Right at Home franchise

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Right at Home are a network of service providers, delivering in-home care to seniors and people with disabilities in the comforts of their own residence. The company’s stated mission is to improve the lives of those they serve, allowing their clients to retain as much independence and dignity as possible

Right at Home business details

Established in Omaha, Nebraska in 1995, and offering franchise opportunities since 2000, Right at Home are one of the largest home care franchises in the world. Currently, they provide care services in eight countries and have almost 700 locations in operation.

Right at Home at a glance:

  • Stores: 700+
  • Required investor net worth: £200,000 
  • Required investor liquid cash: £150,000
  • Minimum investment: £87,000
  • Maximum investment: £156,000

Can I start a Right at Home franchise?

Right at Home state that they are seeking investors with a mindset to deliver personalised, empathetic in-home care. If this is you, and you have a net worth of at least £200,000, and liquid assets of more than £150,000, this opportunity may be of interest.

However, for those seeking a passive investment, take note that Right at Home demand their franchisees are actively engaged in the day to day running of the clinic and you will be expected to grow a positive and helpful presence for the brand and your business within the local community. With the franchisor’s permission you may be able to employ a general manager to carry out these tasks as the business reaches maturity, but initially, this is not a light-touch opportunity.

How much does a Right at Home franchise cost?

Right at Home employs a low-cost business model, with minimal infrastructure required to operate a location. The franchise owner rents (or buys) a small business office to handle administration and managerial tasks, but after that, the delivery of all care services takes place in the client’s own home. For this reason, the entry price tag is low for a business that operates across the UK. Investors can expect to pay £87,000 to £156,000 to open a new location. 

After opening, the franchisee is required to pay an array of ongoing fees and charges. They include:

  • Royalty fee: 5% of net billings or the minimum royalty fee per quarter – whichever is highest
  • Local advertising: 1% – 2% of weekly net billings
  • Brand marketing and promotion fee: 2% of weekly net billings on first £1,000,000 of sales, plus 1% of net weekly billings on the next £2,000,000 of sales per calendar year
  • Audit: Cost of audit and inspection, plus interest on any underpayment
  • Late fees: £50 per week for each item not submitted when due. The company has the right to increase this up to £250, plus the highest allowable legal rate for open account business credit, not to exceed 1.5% per month
  • Additional manager training fee: £300 per day plus expenses
  • Personal care policy and procedure manual: £750

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Estimated key costs to open a Right at Home franchise (new clinic):

Key Costs GuideLowHigh
Franchise fee£33,500£33,500
Office rent£2,500£6,150
Rent deposits£0£4,300
Office improvements£0£3,000
Furniture and fixtures£2,700£6,000
Technology£3,750£6,750
Office equipment and supplies£1,000£6,000
Training£3,000£8,000

Are Right at Home franchises profitable?

Yes. According to external research, the median Right at Home investment is £123,000 and the average gross sales are £1,075,000 per clinic. Average net profit before taxes and depreciation are estimated to be 23%, (£247, 259), which is excellent. Based on these estimates, it would take less than one year to recoup your investment, but these figures are for established locations. A brand-new location will take time to recruit caregivers and secure clients. Right at Home’s own financial disclosures say the average net billings for clinics that have been in operation for 13 to 24 months is £323,000, and that it may be five years or more before you break the £1,000,000 net billings barrier.

What is the failure rate for a Right at Home franchise?

Moderate. The Right at Home franchise failure rate for the past three years is 6%.

Why should you start a Right at Home franchise?

High margins, potential to scale rapidly, low entry cost, and a growing target market – there are over 11 million adults age 65+ in the UK – make Right at Home an attractive investment proposition. The only real hurdle is the potential competition. There are many Home Care Providers businesses in the UK and this number has been growing for the past five years. That’s a lot of carers. Investors considering a Right at Home franchise should thoroughly investigate the size of the unserved market in their proposed designated area. It isn’t just about the number of elderly residents, it’s about how many of them are not currently receiving in-home care and how many of those will be willing to do so in the future. Is there room for your new care business?

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What are the franchise territory policies for Right at Home?

Franchisees receive a “designated area.” This is defined by zip codes and will include a population of at least 15,000 people who are age 65 and older. Right at home does not license any other franchises in the designated area, giving franchise owners an opportunity to grow without internal competition.

What franchise resources does Right at Home offer?

Right at Home provide comprehensive support to their franchisees. Available resources include:

  • Training: Right at Home offers its franchisees a solid online and on-site training program to help them get on board quickly and run their clinics successfully. It trains them on administrative and operational aspects of a home care franchise, as well as a range of growth strategies.
  • Marketing support: The franchisor helps its franchisees with good advertising, marketing and PR support. In addition, the company helps business owners with social media postings and strategies, managing their websites, SEO and email marketing.
  • Third-party financing: Right at Home provide limited financial support for investors seeking franchise funding to cover costs such as the franchise fee, startup costs, and payroll. Alternatively, you could work with the many independent funders who provide business loans to franchise operators.
  • Technology and innovation: The company has consistently developed its technology to improve the lives of its owners and clients, such as Right Focus, which helps owners collect business performance data to make future decisions.

What is the process for starting a Right at Home franchise?

It starts with an application. You can begin the process here. After qualification, and assuming you have completed your financial homework and you still like what you see, you will be required to make an initial investment and then begin the Right at Home training program.

Secure franchise funding with Swoop

Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new care service like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the UK. Just tell us what you need and leave the rest to us.

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Testimonials

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

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