Franchising Since: 2000
Headquarters: Omaha, Nebraska
Estimated Number of Units: 760
Franchise Description: The franchisor is Right at Home, LLC. Franchisees will operate a Right at Home business that provides hands-on personal care, non-medical care, in-home care assistance and companionship care services to seniors and other adults, and (1) supplemental staffing services for nursing homes, hospitals, other home health agencies and other medical settings; (2) specialized nursing services and other in-home medical care; and (3) other related products, services, materials, and equipment.
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Territory Granted: Franchisees will receive a “designated area.” The designated area will be defined by zip codes and generally include a population of at least 15,000 people who are age 65 and older as shown in the Franchise Agreement. Franchisees maintain rights to their designated area even if the population increases. Franchisees must confine their performance of all core services and ancillary services and the supply of all related products, materials and equipment to clients located in their designated area, except as the franchisor may pre-approve in writing. While the Franchise Agreement is in effect, franchisees have an open office (if required), and they are in compliance with all of the terms and conditions of the Franchise Agreement, including but not limited to complying with the minimum quarterly net billings for the franchise, the franchisor will not grant the right to another franchisee to operate a franchised business in the designated area and the franchisor will not establish a company-owned or affiliate-owned right at home business in the designated area.
Obligations and Restrictions: Upon executing the Franchise Agreement, franchisees will designate and retain an individual to serve as their operating principal. The operating principal will have the full authority to act on the franchisee’s behalf in all matters related to the performance of the Franchise Agreement and the operation of the franchised business. If franchisees are individuals, they will perform all the obligations of the operating principal. Franchisees, their spouse, and all holders of a legal or beneficial interest in the franchisee entity must personally guarantee the obligations of the franchisee to the franchisor and enter into a confidentiality and non-compete agreement. Franchisees must offer and sell only those services and products that the franchisor approves as part of the system. Franchisees may not offer any products or perform any services that the franchisor has not authorized.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date the Franchise Agreement is signed. If the conditions for renewal are met, franchisees may renew their right to operate the franchised business for an additional five-year renewal term.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligation. The franchisor offers a 25% discount on the initial franchise fee for franchised businesses acquired by individuals who qualify under the VetFran program.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $49,500 | $49,500 |
Real Estate/Rent | $2,850 | $5,800 |
Rent Deposits | $950 | $5,800 |
Leasehold Improvements | $0 | $3,000 |
Insurance | $6,000 | $10,000 |
Furniture and Fixtures | $2,500 | $6,000 |
Computer Hardware and Software | $3,750 | $9,250 |
Other Office Equipment and Supplies | $1,000 | $6,359 |
Right at Home Personal Care Policy and Procedure Manual | $1,200 | $1,700 |
Technology and Training Set Up Fee | $1,000 | $2,500 |
Home Care Operating Software Setup and Training Fee | $0 | $750 |
Ongoing Technology Fee | $2,100 | $2,100 |
Home Care Operating Software Fee | Based on number of clients | |
Training | $3,000 | $8,000 |
Initial Opening Marketing | $750 | $4,350 |
Permits and Licenses | $200 | $2,700 |
Professional Fees | $300 | $3,500 |
Signage | $0 | $4,000 |
Additional Funds (3 months) | $17,000 | $40,000 |
ESTIMATED TOTAL | $92,100 | $165,309 |
Other Fees
Type of Fee | Amount |
Royalty Fee | 5% of net billings. |
Minimum Royalty Fee | The greater of the royalty fee or the minimum royalty fee per quarter. |
Local Marketing | 2% of net billings unless a cap applies. |
Brand Marketing and Promotion Fee | 2% of weekly net billings on the first $1,000,000 of net billings plus 1% of weekly net billings on the next $2,000,000 of net billings for each calendar year. |
Minimum Brand Marketing and Promotion Fee | The greater of the brand marketing and promotion fee or the minimum brand marketing and promotion fee per quarter. |
Audit | Cost of audit and inspection plus interest on underpayment. |
Late Fee | Currently, $50 per week for each item not submitted when due, plus the highest allowable legal rate for open account business credit, not to exceed 1.5% per month The franchisor may increase this up to $250 per week. |
Insurance Policies | Amount of unpaid premiums plus the franchisor’s administrative fee (if any). |
Renewal Fee | 10% of the then-current franchise fee at the time of the renewal for each renewal of a term approved by the franchisor. |
Transfer Fee | The then-current transfer fee. |
Additional Training | Current rates are $300 per day plus expenses. |
Additional Onsite Assistance | Current rates are $300 per day per person plus expenses. |
Ongoing Technology Fee | The current rate is $2,100. |
Right at Home Personal Care Policy and Procedure Manual Renewal Fee | Currently, it is between $500 and $750. |
Home Care Operating Software Fee | Fee is based on number of clients. |
Educational Programs, Seminars, Convention | Franchisees are required to pay their expenses as well as their employees’ expenses in attending these educational programs, plus the fee the franchisor may charge to cover its costs of providing such programs. |
Cost of Enforcement or Defense | All costs including attorneys’ fees. |
Indemnification | All costs including attorneys’ fees. |
Management Fee | 15% of net billings for the franchised business plus the franchisor’s out-of-pocket expenses. |
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