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FranchisingFeature senior care
january 2017
Sunny Days In-Home Care driven by compassion
safeguard your most important assets senior care franchises
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what’s new! Kuni Foundation of Washington Creates New $50 Million Fund
Caring Transitions Ends 2016 with Opening of 41 New Locations
Caring Transitions, the nationwide leader in senior transition services, is ending 2016 with an impressive 41 new locations open in communities across the United States.
The Wayne D. Kuni and Joan E. Kuni Foundation has partnered with the Community Foundation for Southwest Washington to create a new $50 million fund that will support cancer and other medical research, and enhance the lives of developmentally disabled adults. Before Wayne passed away more than a decade ago, he planned to gift his ownership in Kuni Automotive—a dealership group he founded and grew over 35 years—to a private foundation. That planned gift has made the Wayne D. Kuni and Joan E. Kuni Foundation one of the largest private charitable foundations in Washington. “Wayne and Joan’s wish was to help as many people as possible,” said Carolyn Miller, board chair of the Kuni
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Foundation. “The Community Foundation is the right partner to help expand and
enhance our work well into the future.” The Kuni Foundation board and
community foundation staff will work
together to ensure that the grants awarded
are aligned with Wayne and Joan’s original wishes and achieve the greatest impact. “We look forward to helping the Kuni Foundation fulfill Wayne and Joan’s
mission of supporting cancer and other medical research, and adults with
developmental disabilities,” said Jennifer Rhoads, president of the Community
Foundation for Southwest Washington. www.kunifoundation.org Photo (L-R): Sean Kuni, Joan Kuni, Jennifer Rhoads, Carolyn Miller. Photo credit Sarah Seely.
The franchise is known for helping seniors relocate and downsize as they age in a compassionate and graceful manner - organizing and sorting through personal belongings, interviewing and screening movers, facilitating the packing and unpacking process and handling address changes with government offices. It is this unique focus on liquidations, relocations, organization that has helped the brand stand out from the pack of senior-focused business models, many of which concentrate on home health care and related services. Caring Transitions also organizes and manages estate sales and online auctions for their clients. With online traffic to the auctioning platform numbering in the millions, it has quickly become a major source of revenue for franchisees and a promising area of continued growth for the brand. With a projected 50 or more locations to open in 2017, Caring Transitions expects to be in position to help more members of the growing elderly population than ever before. www.caringtransitions.com
A Place at Home to Franchise its Senior-focused Care Success A Place at Home will offer franchise opportunities beginning spring 2017. The company, established in Omaha in 2012, has a proven senior-focused model that includes licensed home health care, companion care, staffing, advocacy, and community placement. It’s a full continuum of care that is unique in the industry.
There will be 10 initial franchise offerings allowing franchise owners access to the founders of the company who will provide one-on-one support to assist owners in establishing, running and growing their franchises. Dustin Distefano, co-owner and founder, stated, “In an industry that may appear to be over-saturated, A Place at Home has
proven they cannot only compete with the bigger home care agencies, it can offer more and better services that focus on the overall well-being of seniors. We literally grew in the same backyard as two of the largest companies in the industry, and yet we have positioned ourselves as a preferred provider in the Omaha area. We are excited to offer this opportunity in other communities and are confident in the brand’s success.” For franchise information, contact Jerod Evanich or Dustin Distefano at 402-932-4646 or franchise@aplaceathome.com.
Griswold Home Care and GHCFA Jointly Announce New Franchise Agreements Griswold Home Care (GHC), a company that provides non-medical at-home care services, and its independent franchisee association, the GHCFA, a chapter of the American Association of Franchisees and Dealers (AAFD), have announced the successful negotiation of new franchise agreements that affirm a commitment to a common mission and shared guiding principles. These groundbreaking agreements, negotiated over 18 months, are now among the highest rated in franchising history, scoring above 97% conformity with the criteria set forth in the AAFD’s Fair Franchising Standards. The franchise agreements acknowledge that the success of Griswold Home Care’s common mission “is dependent on GHC and our franchisees working together in a spirit of mutual respect and cooperation.” The agreement also sets out guiding principles which include franchisees affirming respect for GHC’s ownership of the system and GHC committing to “respect Franchisee’s
ownership interest in the going concern value of the Franchise, the investment in the Franchise made by Franchisee, and the Franchisee’s interest in a long-term durable relationship. “Griswold, its CEO Matthew Murphy, and the GHCFA epitomize the quest for collaborative win-win franchising,” said AAFD Chairman, Robert Purvin, in announcing the new agreements. “The collaborative effort of management and franchisees working together to accommodate their respective goals and concerns literally defines the AAFD’s vision of Total Quality Franchising.” www.griswoldhomecare.com
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what’s new! Amramp Helps Food Bank Install Wheelchair Ramp in Time for Busy Holiday Season
Keystone Military Families Food Bank, based in Shoemakersville, Pennsylvania has been assisting deployed troops, veterans and military families since 2002 with the goal of providing support to the military community while preserving their dignity. Their food bank serves from 40 to 60 families weekly. Realizing that some of their families had difficulty accessing the center because it was not wheelchair accessible, they turned to Nick Marcellino, Amramp franchise owner in Philadelphia, to install a wheelchair ramp. Nick and his Amramp team were honored to be able to be able to help and provide the ramp in time for the holiday season. Staff members were moved to tears when the ramp was completed and are thankful that the food pantry is now wheelchair accessible for everyone to be able to access safely and easily. www.amramp.com
Assisted Living Locators Hits Growth Milestone Exceeding 50 Franchises Company Offers Free Matchmaking Service for Seniors with Caring Providers Assisted Living Locators offers “free service” for seniors and their families providing expert advice on short-term and long-term care options including in-home care, assisted living, memory care and retirement apartments. It generates revenue from the fees paid by the assisted living facilities per placement and from in-home care referrals.
Scottsdale, Ariz.-based Assisted Living Locators announced today it has exceeded the 50th franchise mark. The milestone comes off of consecutive years of positive growth trends since the company first began franchising in 2006 as the first placement and referral franchise business in the U.S. The company has now signed 59 franchisees in 19 states across the U.S.
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The company touts itself as the “E-Harmony of senior living providers,” trademarking its tagline, “Matchmaking Seniors with Caring Providers for Over a Decade™.” “We are committed to expanding into new markets and we encourage those interested in a franchise to apply,” Olea added. “Franchisees train at the company’s headquarters in Scottsdale and then replicate the company’s operations in their city or state.” www.assistedlivinglocators.com
TruBlue Closes Out 2016 with Opening of Several New Locations TruBlue Total House Care, which has made a name for itself by offering a unique, all-in-one service aimed at keeping homes well-maintained and comfortable ensuring high property values, and allowing seniors to stay in their home as they age, is closing out the year with several new locations open in communities across the United States and in Canada. Programs such as Safe Access, which
makes the home more “user-friendly”, as
well as upgrades for accessibility (ramps,
grab bars, etc.) have resulted in increased revenue year over year, and additional
interest in franchise ownership among
those that wish to help seniors in a nonmedical way.
TruBlue also maintains the homes of busy adults and families with a diverse set of
offerings and custom service plans. This has quickly become a major source of
revenue for franchisees and a promising area of continued growth for the brand. TruBlue’s growth for 2017 is projected at 40 additional locations. This plus a
growing home office team will ensure
TruBlue Total House Care will continue
Visiting Angels Gears Up to Help Protect the Elderly During Flu Season Visiting Angels, one of the nation’s largest in-home senior care providers, is working to protect the elderly from the flu. Weaker immune systems make seniors more vulnerable to the flu and that’s why up to 85% all flu related deaths and more than half of flu-related hospitalizations occur in people age 65 and older. With more than 500 franchise locations, Visiting Angels caregivers can help seniors sanitize their homes, as well as run errands to high exposure areas, like the grocery store or shopping malls. Caregivers can even drive seniors to get their flu shot which is the best way to prevent the sickness. “The flu can be deadly for seniors because they can develop pneumonia and other respiratory illnesses, so families have to be especially vigilant this time of year, “says Larry Meigs, CEO of Visiting Angels. “Our caregivers not only can keep a senior’s home germ free, but they can provide a peace of mind to relatives who live far away and cannot personally care for their elderly relatives.”
to aid the growing elderly population for years to come.
Visiting Angels caregivers can work in a senior’s home 24/7, if necessary. The service is customized to the senior’s needs. They usually help with bathing, dressing, planning and preparing meals as well as light housekeeping.
www.trubluehousecare.com
www.visitingangels.com
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Sunny Days I n-H ome Ca re
Driven By Compassion
Sunny Days In-Home Care Puts People
Over Profits
Imagine this — a young woman is facing one of the most difficult decisions of her life. Her father’s health is deteriorating, and he can no longer care for himself. She knew this day would come, but that doesn’t make her decision any easier. Can she take on the responsibility of being his primary caregiver, or must she accept that her father may have to live out the rest of his days in a nursing home? David Ellenwood finds himself navigating these difficult decisions with families every day. In fact, it’s exactly because of these situations that he decided to open his business, Sunny Days In-Home Care. David firmly believes that no person should be forced to make a decision that doesn’t feel right.
The Motivation Before starting Sunny Days, David worked for more than 15 years as a marketing expert in the home health care and surgical products industries. What he discovered while working for these local companies was a general lack of compassion in their business practices. These companies made decisions based on the bottom line, rather than stopping to consider the people who were actually using the products — to them, each client was just another dollar sign. David quickly realized he didn’t want to be associated with a company or industry that puts profits over people. That attitude runs contrary to the values by which he lives his life. So, he made a decision to do something about it.
David Ellenwood
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“A business model built on the principles of compassion and family values isn’t one that’s frequently adopted, but it’s what has set Sunny Days apart.”
The Early Years Armed with the last bit of his life savings, David took a chance and opened his own business. He was familiar with the risks of entrepreneurship, but his passion to build an ethical care-giving company trumped his worries. Despite the doubts of others in the industry and in his own community, David launched Sunny Days In-Home Care in 2011. He understood their skepticism at his dream to operate a business led by family-rooted values that could still achieve financial success, but he refused to give up. In the beginning, David was the company’s only caregiver; he was the company’s only everything, essentially operating the business as a one-man operation. That didn’t last. Quickly, clients took notice of the Sunny Days difference — the compassion-led commitment to excellent care. The company grew so much during its first year that David had to persuade his wife, Evelyn, to quit her full-time job to join the mission at Sunny Days. Looking back, David says that was one of the best decisions he made for Sunny Days. His wife’s business expertise has not only aided in building the company, but her role in the business strengthens the family values on which Sunny Days was built.
The Industry Takes Notice It’s their compassionate approach to business that led Sunny Days to become the fastest growing in-home care company in the country, as recognized by Inc. 5000. Sunny Days also joined another list of the country’s top performing companies in the Entrepreneur 360, boasting a three-year growth rate of nearly 800 percent.
John and Ashley Bennett
of compassion and family values isn’t one that’s frequently adopted, but it’s what has set Sunny Days apart. Though the company has only been in business for about six years, it’s developed a reputation because of those faithful values. One way David plans to continue building that reputation is by maintaining a familyowned business model.
The Future When Sunny Days started franchising in 2015, with the hope of expanding its client-first business approach to people across the country, David’s son-in-law, John Bennett, joined the team to lead the operation. David’s and Evelyn’s daughter, Ashley, who is also John’s wife, is a part of the organization, helping with marketing and promotion to push the family-oriented environment of Sunny Days even further.
Sunny Days stands proud of those accolades, but they come second to one of David’s proudest accomplishments for his company — Sunny Days now serves more than 200 clients with nearly 300 employees. The best part for David is, even amid that rapid growth, Sunny Days has always maintained the principles on which it was founded.
David’s hope is that when he and Evelyn can no longer manage the business, John and Ashley will step into greater leadership roles and continue to build the family enterprise, all while maintaining David’s vision of high quality, clientcentered and affordable in-home care. Because every human being deserves to lead a dignified and independent life in the comfort and safety of their own home — at least that’s how David sees it.
A business model built on the principles
www.sunnydaysfranchise.com
Sunny Days In-Home Care At A Glance Headquarters: Pittsburgh, Pa. Owners: David and Evelyn Ellenwood Founded: 2011 Clients Served: 200+ Employees: 300 Franchises: 1
CARING:
The Sunny Days In-Home Care Model Comfort: Keeping our clients’ health, safety, quality of life and well-being central in the design and delivery of services Affection: Treating our clients with love, dignity, compassion and empathy Respect: Showing respect for all cultures, religions, ethnicities, sexual orientation, ages, gender and abilities Integrity: Treating our clients with honesty and integrity while recognizing and maintaining confidentiality of client information Nurture: Nurturing our clients for their optimum independence, security and privacy Generosity: Provide our clients an unselfish, good-hearted staff who are generous with their care and compassion
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Featu re
b y G i n a G i l l Fr a n c h i s i n g U S A
senior care franchising
r u t Fea
“A benefit for a lot of senior care is a guaranteed customer base that is forever growing. The US population is aging and make up for a high portion of spenders in the country.�
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re With the increasingly aging population, it is important to consider the options and living situations for the future of a vast majority of the population. Seniors are dependent on quality care, especially in a later age. They want to be comfortable and satisfied, and they are willing to invest in quality treatment. As someone interested in franchising, the senior care business has a lot of options and different variations. It has a sleuth of guaranteed customers, with 14.5 per cent of the US population being 65 years or older in 2014. The number is expected to double by the year 2060, meaning it is a constantly growing customer base.
Residential Care There are many different housing units for seniors within the US. This field of business may have a lot of competition but being a franchisee can provide a leg up. Franchises provide investors with branding, marketing and advertising. A well established and creditable name can carry a lot of weight when it comes to senior care. This is the type of sale that will take a lot of consideration and time
from customers; it is a large purchase that they do not take lightly. Therefore, if they are greeted with the confidence of a well reviewed and strong standing brand, it will help influence their decision. Residential care can offer different types of services including skilled care or custodial care. Skilled care would offer nursing experience and medical support, while custodial care provides support for daily living activities. Both options are well regarded, and some residential franchises offer both. Though medical procedures would involve a lot of red tape and protocol, a franchise would provide support and a clear understanding of the necessities vital to running a skilled residential senior care unit properly. Staffing these units would likely have support from franchisees and it would be important to research individual franchises and confirm the supports available. Some residences provide palliative or hospice care. Palliative Care provides relief from pain, while a hospice provide comfort to terminally ill patients. Sometimes both options coexist within a residence, or parallel to skilled and custodial care. Retirement Communities are now a franchise option. This calls for a focus on in the real estate and rental sector, but its main clientele is seniors. Though it is not necessary, it would
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Featu re
b y G i n a G i l l Fr a n c h i s i n g U S A
“A Home Care Franchise would allow for a flexible and comfortable schedule for the franchisee. There may be the option to work from home, and it could be considered a mobile business.”
will appeal to higher paying consumers. It’s not a tough competition or worthy of worry, but rather consideration.
be helpful to have a passion for this field of work. Those highly interested in senior care would contribute to the success of this type of business. Most families in retirement communities care for themselves. However, this is a great opportunity for those who enjoy working with seniors, as well as real estate. It would involve less work and a better schedule.
Home Care A lot of people would like to remain in their own home, but need assistance in certain areas to get by with daily activities. This type of business can be offered through a reliable franchise for those interested in home care. Again, this type of investment has different levels of care, including medical options. A downside to this type of business is the
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high turnover rate. Due to inconsistent schedules, a lot of home care workers move on from their jobs quickly. Though the talent fraction of this type of franchise may be difficulty, some franchises offer training and support and should be considered before investing. A Home Care Franchise would allow for a flexible and comfortable schedule for the franchisee. There may be the option to work from home, and it could be considered a mobile business. Though some Home Care options are situated within a building, different franchises have different criteria. If you’re interested in a flexible and less involved schedule, consider a mobile business. Both residential care and home care may be competing with the public sectors but the marketing and branding of a franchise
Another form of Home Care is Blood and Medical Services. Some facilities offer services to the senior population on a one stop visit. Some people need their blood taken, the medication checked or they have a question that only requires a short home visit, but it is difficult for them to leave the house. This type of service could easily expand to other patients and clientele, not only the older population, but it is a vital part of the aging population.
Retail There are franchises specializing in medical equipment and some of these pieces are specific to senior care. This is a profitable business because it is constantly in need and it has a high mark up. A lot of patients will have coverage through insurance and therefore take advantage, while the franchisee receives the payments. Some senior care products offer franchises in shipping and receiving field, on a production level that sells many pieces to outlets while some franchises are retail stores specializing in senior care. Of
course senior care products branch over to medical care products, which can produce a lot of profit and a guaranteed clientele. In the shipping and receiving sector, a franchisor may already have a list of well recognized businesses interested or contracted to receive the product. A benefit for a lot of senior care is a guaranteed customer base that is forever growing. The US population is aging and make up for a high portion of spenders in the country. Not only that, the senior population was aware of their retirement and a need to provide for their future, a lot of them are prepared to invest in their care and stability. Though this field of business is competitive, a franchise will allow for strength and support to gain progress within a competitive field. A franchise provides branding, reputation, support and clientele. A franchise is the best option to insure that you are providing a business that follows all the protocols and legalities. Most senior care facilities and products require some medical standard and a franchise offers a safety net and insurance to any investor. Those passionate about the betterment of the community, the care of the population and senior care in general would be best
suited for a franchise in any of the field mentioned above. Though a franchisee could remain at a distance, a compassionate person would create a successful outcome.
Look out for our next special feature: BUSINESS SERVICES FRANCHISING
ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.
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Bill McPherson, Executive Director of Franchise Development, FirstLight HomeCare
Minimum Wage Increases:
How Will it Impact the Home Care Industry? There has been a lot of speculation about how the Department of Labor’s (DOL) decision not to uphold the Obama administration’s 2015 rule stipulating overtime and minimum wage protection to approximately 2 million home health care workers will affect the home health care industry as a whole, and the franchise home care staffing segment in particular. The fear is that with new minimum wage requirements set to go into effect December 1, 2016, the services offered by home care franchises will cost more, making it harder for Bill McPherson
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families to be able to afford non-medical in-home care for their disabled or elderly loved ones needing assistance.
Additionally, the recent DOL decision to issue new overtime salary exemption limits for salaried workers that were also scheduled to become effective December 1, 2016 have home health care staffing franchisees worried. The concern is that the new rules allow those salaried workers making up to $47,476 per year (almost double the previous salary amount) to receive overtime pay when they work more than 40 hours a week. Since many home care workers work more than 40 hours a week, it is thought this could cause financial problems for home care franchisees and their customers if the franchisee has to charge more to make up for the potential wage increases. Because there has been so much back and forth over what these rules mean and how the home care industry will be able to handle the changes, according to Disabilityscoop.com, it appears that the Labor Department is committed to not enforce the ruling on overtime pay until after March 17, 2019 for certain providers. This could change, but it is the latest information available at this writing. If there is a delay, it will surely be a relief to home health care businesses and franchises who are concerned about the rulings and the implications they present. While the jury is still out on whether the changes will actually affect the ability of health care staffing agencies to provide affordable services to the approximately 12 million individuals (according to the latest statics available from the National Association of Home Care & Hospice) who receive home health care, it’s important for franchises, franchisees and healthcare staffing agencies to stay on top of these regulations and comply. Noncompliance with the new rules could mean hefty financial fines for employers who do not follow the DOL’s regulations. Some of the concerns non-medical home care staffing franchisees have include: • Minimum wage regulations will have a negative effect The federal minimum wage is currently set at $7.25 an hour and this concern
“One way to avoid the impact of issues like this is to have a well-paid care-giving staff where the retention rates are significantly above the national average.” seems out of place when according to the U.S. Department of Labor the actual average wage for “direct care” workers was about $10 an hour in 2012. There may be some workers who will see an increase in pay, but it’s unlikely to cause financial hardship for most employers. • The overtime rule would prevent families from using home health care workers due to cost increases franchisees would be forced to charge due to overtime costs This is something that hasn’t happened yet and is questionable that it ever will happen. In a recent article published on HomeHealthCarenews.com, Catherine Connolly, home care fair pay campaign coordinator with the National Employment Law Project (NELP) said it is something that’s really not going to impact employers because very few home health care workers are salaried workers. • Medicaid payments have not been adjusted to take into account the potential increases in the cost of care to families and caregivers Some agencies have reported that there are situations where home health care employers have had to reduce care worker hours and hire additional workers to avoid paying overtime costs. It’s possible that this could end up causing caregiver shortages and an unmet demand for affordable caregivers to care for those with limited budgets. The fact is we really don’t know how these rulings will affect the home health care franchise industry’s bottom line. We do know that the need for qualified,
experienced home health care caregivers is going to increase as the population ages. It
is estimated that by 2050 the proportion of individuals in the U.S. aged 65 and older (15.6 percent) will be more than double
the number of children under age 5 (7.2 percent) according to the U.S. Census Bureau.
This trend is also a global trend, according to the Census Bureau, with the growth
of the world’s older population expected to continue to outpace the growth of the
younger population for the next 35 years. The more compelling question is if the
health care industry is prepared to meet the demands for qualified health care
workers as the population ages, and how to attract more in-home health care workers to provide the skilled care an aging demographic will need.
One way to avoid the impact of issues like this is to have a well-paid care-
giving staff where the retention rates are significantly above the national average. At FirstLight Home Care, we find that
when our caregivers are trained employees (not 1099 contractors), receive continuing educational opportunities and have
benefits options, the retention rates soar. Bill McPherson is the executive director of franchise development at FirstLight HomeCare, which has been awarded Entrepreneur Top 500 franchises, Top Franchisee Satisfaction, Franchise Business Review, Top Veterans Franchise, Franchise Business Review and Forbes Top Franchises. If you are interested in learning more about the Senior Care sector, he can be reached at bmcpherson@firstlighthomecare.com. www.firstlightfranchise.com
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Chris Conner, President, Franchise Marketing Systems
Senior Care Franchises:
A Good Investment?
Senior care franchising has been on a literal tear over the recent decade. Many brands in senior care have franchised their brands to increase their market coverage and attempt to satisfy the ever-increasing demand from seniors needing assistance with everything in day to day life. Franchising USA
We’ve heard many of the statistics, but they are so interesting it’s worth review again. Baby Boomers are getting older and as they reach age 65, the senior population in the United States is expected to approach 100 million, double the number from four years ago and an amazing 20% of the entire U.S. population. Growth rates in the senior services business segment is annualized at over 8% and the global marketplace for senior services is expected to surpass $300 billion. Yes, that’s “B” as in billion. (Source: https://www.franchisehelp.com/ industry-reports/senior-care-industryreport/ ) With all of this growth in population comes the need for a wide variety of
services and support to help us out as we age. The first wave of franchise expansion in senior care came in the form of in-home senior care. As most of us would agree, we would prefer to age in our own home as opposed to going to a large warehouse like structure nursing home filled with other old folks. In-home senior care took the franchise marketplace by storm and brands such as Synergy Home Care, Visiting Angels, Senior Helpers and others opened thousands of franchises in markets around the world. This is likely due to the allure of building a business in a seemingly endless-growth market, having a lower initial investment to open the business (many were operated from home), and a
“If I were to invest in a franchise today, I would give serious consideration to anything in the senior market that makes sense and has a good business model in place.” What has now risen to the top of the growth curve in the senior care franchise market is a range of unique services and business models that all serve the same growing population, but in a different format. One interesting segment of growth we have run into as part of Franchise Marketing Systems consulting work is a number of home retrofitting businesses that offer services to seniors to make their home more accessible, safe and live-able as they increase in age. These business models are a derivation of the traditional handyman or light construction services market and through focusing on this burgeoning population base have been able to differentiate and offer enormous value to their clients. It won’t be long before several brands begin to expand through franchising in this model and I for one am excited to see who takes the leadership position in the segment.
business that had no cost of goods and strong residual revenues. As the in-home senior care market expanded at such a rapid pace, the states began to tighten regulations and the market over-saturated in some areas of the country, this slowed franchise growth in the market segment as the government realized they needed to regulate this massive growth. In-home care businesses have continued to expand, but at a slower pace in 2016 and it seems that the exponential growth has transitioned to other segments with in the senior care market. As the market filters through and the stronger players are positioned for sustainability, the in-home care franchise segment should continue massive growth.
The next model we have seen expand recently is the “miniature nursing home model” which has come to market in the form of converted nursing homes which have been born out of reworked residential properties. This market has apparently been around for some time in the form of single instance homes in markets where licensing permitted and generally unorganized home owners have maybe not always legally started small nursing homes from their properties. With the exponential growth in senior services, more capable and professional entrepreneurs have entered this market segment and one in particular launched a franchise platform under the brand Avendelle Homes. What is particularly attractive about this senior care franchise model is that a real estate investor who is accustomed to investing in rental properties and realizing 6% returns on their investment in a given property, now have the opportunity to invest in
the same real estate with some leasehold improvements and see significantly higher returns on their investment AND still own the property. Regardless of the format, businesses that serve the senior population and offer value to this segment should experience extreme growth through the coming 5-10 years and I’m sure that franchising will continue to play a significant role in distributing these services to new markets and more customers. If I were to invest in a franchise today, I would give serious consideration to anything in the senior market that makes sense and has a good business model in place. There are so many factors playing into your favor today, tomorrow and for the coming years that the market segment is as close to a nobrainer as they come. Chris Conner is the President of Franchise Marketing Systems and has spent the last decade in the franchise industry working with several hundred different franchise systems in management, franchise sales and franchise development work. His experience ranges across all fields of franchise expertise with a focus in franchise marketing and franchise sales but includes work in franchise strategic planning, franchise research and franchise operations consulting. www.franchisemarketingsystems.com
Chris Conner
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David Peasall, SPHR, Vice President, Benefits & Human Resources, FrankCrum
Safeguard Your Senior Franchise’s Most Important Senior Care franchisees have their hands full with regulatory constraints, client needs, family expectations, competitive pressures and profitability concerns. Clearly, some of these are easier to manage than others. Another important area, that of human resource management, can be either a source of positive results or a cause of friction. The good news is that you can control this part of your franchise’s destiny – if you have the proper systems, processes and values in place.
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Often senior care franchisees find themselves locked in operational mode, with too little attention paid to HR management. Here are a few ways to change that and create a more productive, quality oriented senior care franchise that focuses on client care as well as employee satisfaction.
Get and keep good people • Make the right hires: Rather than trying to retrofit skills and values, why not look for the person who is the best fit to start with? Senior care can be a challenging occupation, both physically and emotionally. Often turnover is high and it’s difficult to find the right people. Look beyond the resume to learn why candidates are interested in the position and how they approach
senior care. Although frontline care workers may move from position to
position for relatively small raises, many choose senior care because they are
compassionate, caring people, and may have even been a caregiver for a family member in the past.
• Explain your core values: Discuss
not only what the franchise does but
why you do it, so candidates can judge whether it’s a good fit for them.
• Train for skills, but also client care:
New hires should have detailed position descriptions, training that includes
hands-on competency training in key physical care areas and soft skills
training to help them succeed with sometimes-difficult clients.
“Often senior care franchisees find themselves locked in operational mode, with too little attention paid to HR management.” Here are a few ideas that work well in the senior care setting. o Meaningful employee recognition programs improve morale, productivity and quality of client care. Identify the types of performance, as well as the behaviors you expect, and then offer rewards that motivate employees. o Survey your employees to gain information for future decisions and reinforce how important their opinions are to you. Let them know the results and actions that you plan to take.
Fix it if it’s broken
enior Care mportant Assets • Offer competitive pay and benefits packages: Senior care franchises that experience higher rates of employee satisfaction and retention offer fair wages along with healthcare benefits and paid time off. Adding flexible scheduling, weekend shifts or job sharing may also be attractive to people who are looking for part-time positions. • Get managers on board: Your managers play a key role in employee retention so it’s important to provide them with the training they need to coach, train and lead their staff. • Engage employees: Treating employees with dignity and respect is one of the best ways to improve employee satisfaction and increase candidate referrals from existing staff.
Not all employment relationships are positive, so here are ways to mitigate the negative impact of problem employees. • Train supervisors in corrective action processes: “Corrective action” is a more positive approach than “progressive discipline.” The goal should be solving problems and maintaining the relationship to help the employee become successful; rather than simply justifying a termination. • Understand the issues: Corrective actions typically revolve around performance, attendance or conduct. One area in which many supervisors err is including an “improvement by” deadline. Performance improvement actions should create immediate, consistent and significant changes, not change in 30 or 60 days. If issues are more egregious, you need to retain the right to fire the employee immediately, rather than waiting for the 30 days you had promised. • Document, document, document: One of the most important things to do is documenting the file. Your unemployment insurance rates may increase if you can’t back up the
David Peasall
termination. Even more importantly, you’ll need supporting information if the disgruntled employee sues. Even if the case is without merit, you should have documentation as a critical resource to defend it. • The process: Depending on the severity of the problem, corrective actions may start with a sit-down conversation, followed by coaching and, if the situation continues, a written warning. If separation is the next step, you should have a written record of all these steps, but should also ensure that the employee understands why he/she is being terminated. All such communication should be reasonable, dispassionate and brief. There is no reason for it to be a harsh or lengthy conversation. Your employees are a major “make or break” factor in your franchise’s success. Taking the time to get the proper advice to establish best practices on both the positive and negative aspects of human resource management can put you on the path toward becoming an employer and franchise of choice, and most likely a more profitable one. David Peasall, SPHR, is vice president, benefits and human resources at FrankCrum, a national professional employer organization that provides outsourced human resource services to franchises and other small to midsized businesses. He can be reached at davidp@frankcrum.com. www.frankcrum.com
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Matthew Jonas, President, TopFire Media
The Intricacies of Marketing a Senior Care Franchise How to generate leads with ethical and honest tactics
There’s this misconception in the world of franchising that in order to succeed, a person has to fight, claw and scratch their way to the top. Sure, a successful business career does require a level of grit, hard work and sometimes sacrifice that is unmatched by many other industries, especially when considering franchise lead generation, and
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even more so in an industry as robust and competitive as the senior care industry. But, what’s easy to forget when marketing one of these senior care franchises, is the source of where the business comes from — human beings. Senior care is one of the most lucrative businesses in franchising, but it comes with intricacies that are beyond that of nearly every other concept in the country. Because of that, lead generation tactics — whether from a franchise or consumer perspective — must be well developed, morally responsible and most importantly, sympathetic to the needs these businesses are addressing.
Reputation and Referrals One of the primary ways to spread awareness and boost brand recognition for a senior care franchise is through word-of-mouth advertising and a quality referral program. Not only are these methods inexpensive and often times free, but they offer reassurance to a brand’s reputation. There’s nothing that speaks to a brand’s overall quality more than a raving review from its customers. Rarely are brands with bad reputations and distorted marketing techniques getting the seal of approval from the people who’ve used their services. While this tactic speaks more to how a franchise actually operates (a first-rate business model produces first-rate service), there are ways to utilize positive reviews to enhance the image of a business. If a client has nothing but good to say about a business, either to their friends, family or people within the business, there is a good chance that client is willing to share those thoughts on a bigger scale. As long as it is handled ethically and responsibly, it’s completely acceptable to ask for a testimonial to share on a website or business listing platform. When asking for testimonials, ensure the person providing the review doesn’t feel pressured into doing so. Specifically in the senior care industry, be sure the situation is appropriate for this kind of request, and never push the issue if the individual is uninterested.
“A social media presence isn’t meant to attract the seniors who are being cared for, but the loved ones of those seniors.” Social Media and Senior Care On the surface these seem worlds apart, but in reality, a social media presence isn’t meant to attract the seniors who are being cared for, but the loved ones of those seniors. People use social media for a variety of reasons, and as these platforms continue to grow and evolve, the uses for them do the same. For instance, in October, Facebook launched a new section called “Marketplace” after seeing its users interacting on the variety of “buy and sell” groups that already existed on the platform. Facebook Marketplace now acts as a “friendlier Craigslist,” where people can search for items they are in need .Facebook users consult friends, family, and sometimes even strangers when they’re searching for something. It’s not hard to find the posts…”ISO business that can provide XYZ service”, “looking for a new [enter product here]”. By establishing a social media presence that offers value and insight to those searching, a brand can position itself as a leader in the industry. Facebook advertising is also a great, inexpensive way to connect with people who are looking for senior care services.
Language is Key Despite the array of marketing avenues senior care companies can take, one rule holds true for each and every one — the language that’s used to generate leads must be sensitive to the industry. It’s a fine line to walk when discussing a business that generates revenue and profits from the livelihood of human beings, so it is critical to tread that line lightly. It’s easy — especially when considering the substantial growth of the senior care industry — to tout a company’s success and ability to compete in the market, but
these dollars are directly related to people, not products, and should be considered as such. Franchise marketing and lead generation in the senior care industry comes with a whole different set of sensitivities and subtleties, but that doesn’t mean there isn’t a place to boast a company’s success. Especially if that success stems from an authentic mission and respectable business model. Matthew Jonas is the president of TopFire Media, an award-winning integrated public relations and digital marketing agency specializing in franchise marketing and consumer branding. Together with the leaders of iFranchise Group and Franchise Dynamics, Jonas established TopFire Media to provide a strategic and synchronized method for digital marketing in the franchise industry. As a digital marketing strategist with more than a decade of in-depth experience in SEO and PPC, social media publishing, conversion based marketing, inbound marketing, sales management, and online lead generation, Jonas has built a career dedicated to delivering an integrated marketing approach that achieves client success and long-term relationships. www.topfiremedia.com
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