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Right at Home Franchise Costs $89K – $158K (+ 2024 Profits)

Right at Home, an esteemed name in the home care franchise industry, was founded by Allen Hager in 1995 in Omaha, Nebraska. Hager’s background in hospital administration and witnessing the struggles of older patients transitioning back home after hospital stays led him to establish a service that provides ongoing assistance to aging adults or those with disabilities within the comfort of their own homes.

After refining the business model for five years, Right at Home began franchising in 2000, rapidly growing across multiple countries, serving tens of thousands of clients daily.

Headquartered in Omaha, Nebraska, Right at Home stands out in the crowded space of home care services by offering an extensive support system to its franchisees, including robust training and resources, and a unique business model focused on client-centered care.

a financial plan for a franchise
a financial plan for a franchise

Initial investment

Type of ExpenditureAmount
Initial Franchise Fee$50,000
Real Estate/Rent$2,550 – $6,150
Rent Deposits$0 – $4,300
Leasehold Improvements$0 – $3,000
Insurance$6,000 – $10,000
Furniture and Fixtures$2,700 – $6,000
Computer Hardware and Software$3,750 – $9,250
Other Office Equipment and Supplies$1,000 – $6,000
Training$3,000 – $8,000
Right at Home Personal Care Policy and Procedure Manual$750
Setup Fee and First Year Annual Subscription Fee for Right at Home Personal Care Policy and Procedure Manual$125 – $350
Sales Training Program$700 – $1,000
ATS Payment$375 – $1,875
Initial Opening Marketing$750 – $4,350
Permits and Licenses$200 – $2,700
Professional Fees$300 – $3,500
Signage$0 – $4,000
Additional Funds (Three Months)$17,000 – $40,000
Total$88,700 – $160,725

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

The Initial Franchise Fee is $49,500. This fee is fully earned by the Franchisor upon execution of the Agreement and is non-refundable.

Royalty Fee

Franchisees pay a Royalty Fee of five percent (5%) of the Net Billings, beginning from the Active Grand Opening Date.

Marketing/Advertising Fee

The Brand Marketing and Promotion Fee varies with Net Billings, starting from two percent (2%) for Net Billings up to $1,000,000 and decreasing to one percent (1%) for amounts over $3,000,000.

Management Fees

The Management Fee is 15% of Net Billings plus out-of-pocket expenses, payable if the Franchisor operates the franchise due to the absence or incapacity of the franchisee.

Initial Franchise Fee

The Initial Franchise Fee is $49,500. This fee is fully earned by the Franchisor upon execution of the Agreement and is non-refundable.

Royalty Fee

Franchisees pay a Royalty Fee of five percent (5%) of the Net Billings, beginning from the Active Grand Opening Date.

Marketing/Advertising Fee

The Brand Marketing and Promotion Fee varies with Net Billings, starting from two percent (2%) for Net Billings up to $1,000,000 and decreasing to one percent (1%) for amounts over $3,000,000.

Management Fees

The Management Fee is 15% of Net Billings plus out-of-pocket expenses, payable if the Franchisor operates the franchise due to the absence or incapacity of the franchisee.

revenue

Revenue & Profits

a financial plan for a franchise
a financial plan for a franchise

Franchise pros and cons

The Pros:

  • Quality training: The franchisor offers its franchisees a detailed 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 growth strategies and more.
  • Exclusive territory protection: Right at Home allows its franchise to operate in an exclusive territory. It does not license any other franchises in the designated area, giving franchisees an opportunity to grow without internal competition.
  • Marketing support: The franchisor helps its franchisees with solid marketing, branding and public relations. In addition, it helps them with their social media postings and strategies, managing their websites, SEO and email marketing.
  • Third-party financing: The franchisor has relationships with third-party partners to help franchisees fund their startup costs, franchise fees and ongoing costs.
  • Technology and innovation: Right at Home 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.

The Cons:

  • Not a home-based business. A Right at Home franchise cannot be operated from home or in a vehicle. Franchisees must have an established office space, a retail facility or a warehouse to operate from.
  • No absentee ownership: The franchise is not a passive investment opportunity. Franchisees must be fully involved in the day-to-day decision-making and operations of their centers.
  • Not a part-time business: Franchise owners are required to open full-time for at least 40 hours per week.

How to open a Right at Home franchise

1: Initial Inquiry and Information Gathering

  • Explore the Opportunity: Begin by researching Right at Home and understanding the market potential and franchise requirements.
  • Request Information: Contact Right at Home through their franchise inquiry form to receive detailed franchise information and possibly arrange an initial discussion.

2: Formal Application Process

  • Submit Application: Complete a formal application, providing details about your background, management experience, and financial status.
  • Financial Verification: Demonstrate access to at least $150,000 in liquid assets and adequate savings or income to cover personal expenses during the startup phase.

3: Discovery and Validation

  • Initial Consultation Call: Engage in a high-level conversation with a franchise representative to discuss your goals and verify territory availability.
  • Validation with Current Franchisees: Speak with existing franchise owners to gain insights into the day-to-day operations and challenges of running a Right at Home franchise.

4: Training and Approval

  • Attend Discovery Day: Visit the headquarters in Omaha, Nebraska, to meet the executive team, understand the company culture, and confirm mutual interests.
  • Undergo Training: Participate in the comprehensive training program, covering all aspects of the business from operations to client care.

5: Finalizing Franchise Agreement

  • Sign Franchise Agreement: Upon mutual agreement and approval, finalize the franchise agreement.
  • Financial Commitment: Pay the franchise fee of $49,500 and prepare for other initial investment costs ranging from $82,000 to $150,800.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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