Right At Home’s Margaret Haynes on Franchise Operations

Senior care is one of the fastest-growing segments in franchising, and with Baby Boomers now well within retirement age, the industry shows no signs of slowing down. One of the largest senior-care franchises, Right At Home operates more than 450 locations across nine countries. And because Right At Home services clients in their homes rather than branded facilities, the franchise relies upon a flexible operations model that allows franchise owners to provide the same level of care to seniors with a range of needs in a range of environments.

Operationally, that’s a lot to manage, which is why Right At Home has built a larger, more specialized operations team than you’re likely to find at franchise brands in other segments. Leading that team is Margaret Haynes, COO for Right at Home*. We talked to Haynes to learn how she approaches franchise operations. Here’s what she had to say.

Operations team structure

Haynes: Our operations team is made up of six main areas of focus, all of which report to me as Chief Operating Officer. Those six areas are Marketing, Franchise Business Solutions, Franchise Learning & Coaching, Standards & Quality, Technology Solutions and Strategic Operations.

Those teams have anywhere from four to 19 people, and most have a VP, a director and specialists.

Haynes: The structure of our operations team has evolved enormously over the years as our system has grown. We are extremely blessed to have amazing franchisees that are focused on bringing the Right At Home mission to life in their local communities. Our mission, “To improve the quality of life for those we serve,” is why we do what we do and is the foundation on which everything in our system is built upon.

Key operational concerns

Haynes: From an operational perspective at the franchisor level, there are four areas that are always top-of-mind:

1. Brand reputation, meaning the quality of brand-delivery at the unit level. Whether it’s a product-based franchise or service-based franchise, how the product or client experience is being delivered is critical to maintaining brand quality, standards and ultimately reputation.

2. Unit profitability. This is critical. If individual unit owners are not building sustainable, profitable businesses, the franchisee will not be happy, which in turn has implications to the broader system.

3. Responsiveness, meaning how quickly can the franchise system responds to changes in the market or consumer demands. Depending on the size of a franchise system, implementing changes across the network (e.g. getting all the independently owned and operated units on the same page) can present challenges that a corporate-owned business does not have to face.

4. Compliance, not only with brand standards but also with industry, state and federal regulations is extremely important. A current example in the franchising industry is Joint Employer regulations. Franchises must ensure that a joint employer relationship is not created between the franchisor and franchisee, nor between franchisees. Each franchise is independently owned and must operate independently regarding personnel decision-making, compensation, et cetera.

Industry specific concerns

Haynes: Though not entirely unique to Right At Home, a few operational concerns that are unique to our industry include:

1. Licensure compliance, because the majority of states have some form of licensure associated with home care.

2. Workforce availability. With approximately 10,000 people turning 65 every day, the number of individuals who can benefit from home care and support is rapidly growing, without an equally growing base of individuals to care for them. This creates challenges for our industry and society as a whole. Operationally, this requires Right at Home to think creatively.

3. Education. The aging process and the various resources available can be overwhelming. For example, many times individuals do not understand the differences between home care and home health. Continuing to educate families, healthcare professionals and others about the aging process is always top of mind.

Haynes: As a franchisor, we feel strongly that we have to be focused on both individual unit operations and overall system operations. Both are critical to overall performance and success. We have a responsibility to support each of our franchisees at the unit level by providing meaningful tools, programs and coaching in support of building sustainable, profitable businesses.

System operations focus

We also have a responsibility at the system level to continuously evolve and execute a strategy that allows the business model to advance and adapt to new opportunities and changes. Strategy ultimately gets executed at the individual unit level. Therefore, we constantly look at things through two key lenses: unit level and system level.

One of the many things I love about franchising is that the fundamental goal of the corporate office and that of the individual franchisee is aligned, meaning the corporate office is not successful if the individual franchisee is not successful.

Haynes: If the brand is struggling, I would start by looking at two key areas: engagement and unit economics. As I mentioned earlier, engagement is key to any successful franchise system. Without engagement, the performance of the overall system and the individual unit will suffer. I would do a deep dive and evaluate the level of engagement the corporate office has with their franchisees. If the franchisees are not engaged with the franchisor, the franchisor needs to find out why and start making improvements.

I would also do a deep dive into unit economics to understand how individual franchisees are performing from a financial perspective. I would be laser-focused on the bottom line versus the top line. If the individual franchisee is not profitable, the top line doesn’t matter. A franchise can go under even though they have sales coming in if they are not profitable. Cash is king.

Haynes: Having no prior experience in franchising before Right at Home, I wish I would have known more about the psychology of franchising. More specifically, a greater appreciation for the various nuances that come with working with independent business operators and the importance of understanding where each franchisee is coming from in order to help them get where they want to go. Because each franchise is independently owned, which also means each franchisee has their own set of opinions and ideas, a considerable amount of time is spent winning the hearts and minds of every franchisee.

That’s also why having strong engagement between the individual franchisees and the corporate office is extremely important.