Right at Home

The Right at Home franchise fee is $49,500 for a standard single-unit territory. A 25% VetFran discount reduces this to $37,125, and multi-unit purchasers get the same discount per additional territory. The fee is fully earned and non-refundable upon payment.

Additional upfront fees are modest: a Technology and Training Setup Fee of $2,500 (covers technology setup and initial training orientation), and a first-year Ongoing Technology Fee of $2,100 (covers the applicant tracking system, LMS, and legal document subscriptions — typically pro-rated in Year 1).

Total investment of $92K to $165K reflects the low physical footprint of a home care business. Major line items: $49,500 franchise fee, $6,000–$10,000 insurance (general liability, workers' comp, professional liability), $3,750–$9,250 computer hardware and software, $2,500–$6,000 furniture and fixtures, $3,000–$8,000 training expenses, and $17,000–$40,000 in three-month working capital. Rent and leasehold improvements are minimal ($2,850–$8,800 combined for first three months) — many operators start from small office spaces or home offices, leasing more prominent offices as they scale.

Ongoing fees: 5% royalty on net billings weekly, subject to a minimum royalty that ramps up after meeting the Minimum Performance Standards (MPS) threshold starting in Quarter 3. The Brand Marketing and Promotion Fee is structured as 2% of the first $1M in annual net billings, plus 1% of the next $2M — effectively declining as you grow. Local marketing requires 2% of net billings.

The Home Care Operating Software Fee is client-volume-based (amount not specified in the FDD). Total ongoing burden at maturity is approximately 7–9% of net billings before local marketing.

Right at Home provides excellent Item 19 transparency, reporting data from 361 franchised offices open at least 12 months during FY 2024, representing the system's ongoing operations against a $757.9M system-wide net billings base.

FY 2024 — All 361 offices open 12+ months: - Average net billings: $1,739,357 - Median net billings: $1,341,639 - High: $14,872,131 | Low: $11,795

The low figure ($11,795) reflects a location that was barely operating — this range is wide, and the average is pulled up by large multi-territory operators.

FY 2024 — Offices open 61+ months (315 locations, the mature cohort): - Average net billings: $1,848,745 - Median net billings: $1,386,635

FY 2024 — By franchisee entity (269 entities operating 501 businesses): - Average net billings per entity: $2,819,260 - Median: $1,982,748

This multi-territory view shows that operators who acquire additional territories earn substantially more — nearly $2M median per entity versus $1.34M for single territories.

Key margin data (Table 3A): - Average gross margin: 44.43% - Average office payroll: 11.80% of revenue - Average marketing spend: 2.54%

At the median mature office revenue of $1.39M with a 44% gross margin, gross profit is approximately $612K. After office payroll (11.8% = $164K) and royalties/fees (~8% = $111K), there's roughly $337K for rent, other overhead, and owner compensation before debt service. On a $128K midpoint investment, the implied payback is well under 12 months — one of the most capital-efficient entry points in any franchise category.

Right at Home has grown consistently and accelerated: 524 total units at end of 2022, 531 at end of 2023, 551 at end of 2024. The 2024 acceleration to 40 new openings (versus 21 in 2023 and 26 in 2022) with only 5 closures is the strongest growth signal in recent years.

The closure rate of 5 locations out of 511 operating is under 1% — extremely low for any franchise category. This indicates that Right at Home operators who open are overwhelmingly staying in business and staying in the system.

The 12 company-owned offices (out of 551 total) suggest the franchisor has real operational confidence in the model — they're running offices themselves, not just collecting royalties.

Demographic tailwinds are substantial: the U.S. senior population (65+) is projected to reach 94 million by 2060, up from approximately 57 million today. Home-based care is increasingly preferred over facility-based care. This is one of the most demographically favorable categories in franchising.

The minimum royalty structure activates in Quarter 3 (typically month 7 of operations) once Minimum Performance Standards thresholds are met. This creates a floor royalty obligation regardless of your billings in slow weeks — understand what those MPS thresholds are and how they escalate before signing.

The caregiver workforce is the central operational challenge. In-home care businesses live and die on caregiver availability, quality, and retention. Caregiver turnover in the industry averages 60–80% annually. Your ability to recruit, background-check, train, and retain caregivers directly determines your revenue ceiling. Labor market conditions in your territory — competing home care agencies, hospitals, nursing homes all drawing from the same caregiver pool — are the most important local market research to conduct.

The transfer and renewal fee structure was not fully disclosed in the extracted data. Request the complete Item 6 fee schedule before finalizing due diligence.

The revenue range is extremely wide: from $11,795 to $14,872,131 among reporting offices. The bottom of this range represents a failing office — understand what differentiates the bottom quartile from the median. Right at Home does not provide quartile breakdown in the available data; request the full Item 19 table for additional segmentation.

Worker's compensation insurance costs in home care can be substantial and vary significantly by state. Some states mandate state-fund workers' comp; others allow private coverage. This is a meaningful operating cost that the Item 7 estimate may understate for your specific state.