Behind the Numbers with Chief Financial Officer Jeff Vavricek

One of the first realities prospective Franchise owners need to understand is this: while the opportunity is strong, the path to building a successful business requires intention, discipline, and the right support System.

That was a central theme when Right at Home’s Senior Vice President of Franchise Development, Jen Chaney, sat down with CFO Jeff Vavricek during a recent Tuesday Talk. Drawing on more than 16 years with the Brand, Jeff shared insights into the financial side of Franchise ownership, what new owners often underestimate, what truly drives performance, and how to build a business that lasts.

So, what should you expect financially as a new Franchise Owner? And what separates those who thrive from those who struggle?

Understanding the Biggest Risk

When people evaluate Franchise opportunities, they often think about demand first. In-home care demand is strong and growing, but that’s only part of the equation.

As Jeff explains, the true driver of the business is the caregiver workforce.

“Our business is almost entirely dependent on caregivers,” he says. “If you don’t have enough of them, you can’t run your business.”

That makes recruitment and retention one of the most important operational and financial priorities for any Franchise Owner. Without a steady pipeline of caregivers, growth and revenue opportunities narrow.

However, this isn’t something you’re expected to figure out alone. Right at Home provides franchise owners with tools, strategies, and ongoing support to help build and sustain a strong workforce.

The owners who lean into these resources, Jen adds, are often the ones who mitigate risk most effectively.

The Biggest Myth About Senior Care

With a rapidly growing senior population, it’s easy to assume that success in home care comes quickly. But Jeff cautions against that mindset.

“There’s a myth that this is an easy business,” he says. “Or that the demand alone will make it easy to make money.”

While demographics are highly favorable, building a sustainable business still takes time and effort. You’ll need to establish relationships in your local healthcare community, build trust with referral partners, and consistently deliver quality care.

As Jen points out, this isn’t unique to home care; it’s true of entrepreneurship as a whole. The difference here is that your work directly impacts people’s lives, which raises both responsibility and reward.

Making Sense of Revenue Mix

Another important concept for new franchisees is payer mix, essentially, where your revenue comes from.

Right at Home Franchise owners may serve clients who pay:

• Privately (out of pocket)
• Through VA benefits
• Via long-term care insurance
• Through Medicaid or state programs (where applicable)

While there is flexibility in how you structure your business, Jeff recommends a clear approach: maintain a strong majority of private pay revenue.

“We like to see at least 70% private pay,” he explains. “Because that’s what you can control.”

Third-party payers set reimbursement rates, and those rates can change or stay flat for years. Private pay, on the other hand, allows you to adjust pricing based on your market and your cost structure.

A balanced mix can provide stability, but maintaining control over a large portion of your revenue is key to protecting your margins.

Looking Beyond Revenue

Revenue is important, but it’s not the only indicator of a healthy business.

According to Jeff, thriving franchise owners pay close attention to several additional metrics, including:

• Gross margin: What you earn after caregiver wages
• Office payroll: Ensuring your internal team scales appropriately
• Fixed costs: Expenses like rent and insurance
• Sales activity: Outreach to referral partners and community contacts

To help simplify this, Right at Home provides franchisees with the Right Focus Dashboard, a centralized tool that tracks KPI(s) in one place.

As Jeff describes it, the value isn’t necessarily in discovering new metrics; it’s having consistent visibility into how your business is performing.

“You can log in, see trends, and understand where to focus,” he explains.

Even better, this tool is included as part of the franchise system, not an additional cost.

The Habit That Drives Performance

If there’s one habit Jeff says consistently separates top performers, it’s this:

They track their data.

Whether it’s caregiver applications, hiring ratios, or sales visits, successful franchise owners keep a close eye on the activities that drive growth.

For example, building your local presence means getting into the community, meeting with discharge planners, connecting with healthcare providers, and establishing referral relationships.

And just as importantly, it means tracking those efforts.

“Keeping track of who you’ve talked to and what you’re doing. " That’s super important,” Jeff explains.

Why Goals Matter

Right at Home franchise owners don’t operate in isolation. Each owner works with a Business Performance Coach to develop a strategic plan that includes financial and operational goals.

These goals might focus on:

• Revenue growth
• Client volume
• Hiring benchmarks
• Profitability targets

While not every entrepreneur naturally gravitates toward structured goal setting, Jeff emphasizes that those who do, and who hold themselves accountable, tend to perform at a higher level.

“It gives you something to measure against,” he says. “And then you can adjust if you’re not on track.”

Combined with tools like the Right Focus Dashboard, this approach creates clarity and direction.

Final Thoughts

While financial strategy, data, and systems are all essential, Jeff closed the conversation with a reminder that goes beyond numbers.

“This isn’t an easy business,” he said. “You have to have a passion for helping others.”

At its core, home care is about providing peace of mind to families and support to those who need it most. The most successful franchise owners are those who find fulfillment in that mission.

Because in the end, building a strong business is about more than financial performance; it’s about purpose.

Watch Jeff's full interview on our YouTube channel.