What Should You Look for When Evaluating a Franchise Territory?

The journey toward Right at Home franchise ownership starts with a single, critical choice. Where do you plan to set up shop? What territory will you serve? What kinds of communities make up this territory?

This decision will shape your business in profound ways. Factors like geography and the local economy will play a big part in your caregiver recruitment strategy. The local competition can tell you a lot about the demand for home care services. And the actual needs of people within the communities you serve will ultimately light your path to growth.

So obviously, this is a big decision. It’s important to have all the facts before you make this choice. That’s one of the reasons that a lot of potential owners choose Right at Home over other franchise opportunities. Right at Home ensures you have all the vital information at your fingertips as you consider your next move.

The Right at Home Franchise Discovery Process

That’s the first thing we do at Right at Home. We make sure you know everything you need to know before taking the big leap into ownership. We spend 30 to 60 days getting to know each other a little better.

During this discovery process, we get the chance to learn about your business background, your goals, and what brings you to Right at Home. You’ll have the opportunity to learn more about our business model, the process of launching your own franchise, and what it’s like to be part of our network.

And as part of this discovery process, we also provide you with direct guidance and a lot of informative resources as you look for the right territory. There’s a good reason we do this right at the outset of your journey. As Right at Home Sr. VP of Franchise Development and Sales Jen Chaney says, “It’s incredibly important that you have a general understanding of the territory you are purchasing.”

8 Things You Need to Think About When Evaluating a Franchise Territory

Below, we take a closer look at some of the factors you’ll need to consider so you can arrive at that general understanding and make a well-informed decision about where to launch your new homecare franchise.

1. Get to Know the Local Demographics

Who lives in the territory you’re considering? Before you launch your franchise, you want to know that there is a significant need for homecare services. That starts by determining what portion of the population is 65 and older.

Right at Home offers an interactive map showing all available territories for franchising, along with a breakdown of the overall population, the number of residents over 65, and the number of seniors in that territory with Medicare coverage.

Do your research on the size and growth of the older adult population in the territory you hope to serve. And take a deeper look at demographic trends, including overall population growth and the number of people in the community who will eventually age into your target demographic.

2. Size Up the Competition

Evaluate the competition. Are there other successful home care providers operating in the territory? If so, how are these businesses performing, and is there room for competing providers?

Ironically, a little healthy competition can be a positive indicator. The success of other providers in the community can be a good sign of a clear need and demand for home care services. And the more you know about the competition, the better a position you’ll be in to set your business apart.

As Right at Home President and CEO Margaret Haynes notes, “It’s important that you know what you’re purchasing and that you’ve done your research. I always say I love competition in a market because it allows you to differentiate yourself against others. But first, you, as a new business owner, really need to understand the market that you’re going into.”

3. Explore Referral Opportunities

What is the local healthcare ecosystem like in the territory you’re considering? Is this an environment where you can nurture meaningful long-term relationships with other care providers? That will be vital as you look to build a pipeline for new clients.

Learn everything you can about the hospitals, rehabilitation facilities, and senior living communities in your territory. Reach out to skilled nursing facilities, outpatient surgical centers, and area physicians.

A territory rich in healthcare services is likely also rich in potential clients. Make sure you can position yourself as a preferred provider with other local healthcare providers and senior services.

4. Look Into the Labor Pool

Before you can provide care, you need to recruit a team of qualified caregivers. Be sure the labor pool in the territory you choose can support this need.

You can learn a lot here by first looking at the competition. How many agencies and caregivers are operating in the territory, and what kind of income do they earn? Is the local labor pool large enough to support a new entrant, and can you afford to pay a competitive wage based on what other agencies pay their caregivers in the region?

And is the territory likely to produce an ongoing supply of talent? Prioritize territories with nursing schools, vocational healthcare training programs, and community colleges that offer Certified Nursing Assistant (CNA) or Home Health Aide (HHA) certificates. Educational institutions like these suggest that the region will continue to nurture new talent.

5. Understand the Community

Right at Home provides all prospective franchisees with a wealth of information about the territories they’re considering. You’ll get data and details on the communities, the people who live in them, and the healthcare resources available to them.

But it’s up to you to use the information to gain a deeper understanding of the communities you’ll serve. You need to understand the geography of your territory, the travel distances between clients, the types of neighborhoods you’ll be sending caregivers to, and how seniors are distributed throughout it. You need to gain a deeper understanding of the characteristics that truly define the communities you’ll serve.

This is one reason we typically encourage prospective franchisees to first consider territories they are already familiar with.

“Our preference would be that you’re already living in the market that you’re purchasing,” Margaret says. “Because presence in your local market is really important. Doing your homework and understanding the information that’s provided in our Franchise Disclosure Document is really important.”

6. Consider the Economy

Make sure you understand the economic landscape before you start building on it. Make sure that the opportunity matches the cost of doing business. Is the local household income in the region sufficient to support homecare services? Conversely, are typical wages in the region within a range that your new business can afford?

Get the economic lay of the land and make sure the numbers all add up to the potential for profitability.

Again, our interactive map is a good place to start. In addition to figures on population size and age, you can see average household income and average net worth for every available region.

7. Evaluate the Growth Potential

Do you see a territory with meaningful growth potential? In other words, what are some of the demographic trends that you see playing out in the territory over the long run? Are new families moving in? Are there new residential developments under construction? Do you expect new businesses to continue opening and boosting the local economy?

These factors can shape the lives and fortunes within a given community. This, in turn, can have a profound influence on the direction and growth of your business. Think beyond the current conditions in your territory and consider the way these changes could ultimately shape your franchise.

8. Take Advantage of Your Support System

No matter which territory you choose, you will enjoy the benefit of direct guidance and a wealth of information. Right at Home provides every candidate with a treasure trove of market research, data, and tools, along with personal guidance on how to use it all.

We understand that there’s a lot to consider and a lot to absorb as you look for the right territory for your new business. That’s why we work so closely with every prospective franchisee during the selection process.

And again, it’s one of the things that really sets Right at Home apart from other franchising opportunities. We stand right by your side as you make vital decisions like where to set up shop. We provide you with all the resources to make this decision wisely. And we make sure you know how to use these resources to set yourself up for success.

Trusting the Process

The truth is that no single data point can really tell you if a franchise territory is right for your business. You really need to look at the complete picture – the people, the competition, the communities – to make an informed decision.

Reach out today, and we’ll start painting that picture together.