iRecover Franchise FAQ

 

FAQ- iRecover Addiction Treatment Centers –

Franchise Opportunity

 

  iRecover provides world class residential treatment for those suffering with addictions in various locations across Canada and the United States. iRecover brings the old and the new together in one effective and user friendly package. iRecover uses the iRecover iPad as a classroom tool and to deliver our 12 Step based program and Cognitive behavioral therapy based extended program to our participants. For those in need of residential treatment, iRecover offers standard and extended classroom based programs that boast a success rate between 70 and 80%

 

Background and Opinions:

 

  • Why did Founder Jim choose to start this type of business?

 

Jim chose this business after 15 years of sobriety. His youngest son was hit by a drunk driver and almost killed. He did not want another parent or family to have to go through getting that middle of the night call and the subsequent events which followed so he decided to open a program in Tees, Alberta, Canada with the intention of working with individuals who had impaired driving charges and helping get drunk drivers off the road.

 

  • When did you open my business?

 

The business started in 2006.

 

  • Was iRecover a franchise when it started?

 

No. We have been working on the franchise concept for approximately a year. Our mission statement is to Change the World, One Family at a Time. Jim recognizes he cannot accomplish this alone and thus decided to go the route of franchising.

 

  • Can you provide a general description of services and how you provide them? 

Acute medical detox, residential addiction treatment, partial hospitalization, and intensive outpatient programming. Provided onsite by qualified professional staff.

All programming is provided on iPad for ease of facilitation and allows participants to access information indefinitely.

 

Initial Training & Opening Support:

 

  • What is the initial training to prepare me for opening my business?

Initial training occurs four-weeks prior to opening at either our Alberta or California locations. This includes members of management as well as the counseling staff. You run through all day to day operations as well as the iRecover treatment program.

 

  • During The first year in business, how does the franchise company support the business activities? Can you give an example?

 

We are beside this entire process. This can include helping with regulatory issues, licensing, obtaining accreditation, IT issues, or helping with day to day operational questions. Also can include clinical consultation with our Clinical Director.

 

We have a member of iRecover Corporate Management on call 24/7 to assist with any issues which arise for our franchisees. We also use an instant messaging system to allow for easy question and answer sessions with members of iRecover Corporate.

 

  • What do you think is the biggest mistake that a first-year franchise owner can make?

 

To have expectations set too high for both self and participants.

Burnout from the emotional and physical working conditions (lack of self-care and boundaries).

  • What would cause a franchisee to fail?

 

Improper ethical dilemma management

Legal issues

Taking improper referrals

Failure to follow model

Failure to follow training and on-going support

 

 

 

 

Ongoing Support:

 

  • How will the franchise company support my business activities and results? Can you give an example?

 

We will be available via telecommunications to assist in the moment on a myriad of issues from clinical issues to how to address maintenance issues.

 

After initial training, what additional training exists? Is it regularly scheduled, at random, as needed, or a combination? What additional training have you undergone?

As needed training; access to online webinars and online streaming of iRecover Headquarters; cost as per FDD for on-the-ground assistance.

 

  • Is there franchise company flexible in giving more training to franchise owners who need/want it?

 

Absolutely. We want you to feel as prepared as possible and we understand every person and situation is unique so “one size fits all” training is not feasible.

 

  • Does the franchise company host franchisee annual meetings or teleconference calls?

 

Once we have 5 franchises, we will be hosting an annual meeting plus quarterly conference calls.

We will have a central location for training resources, ongoing continuing education webinars, and any additional helpful resources. We will also encourage collaboration between franchisees and franchisor through using online discussion forums.

 

Marketing Programs:

  • How does the franchisor contribute to my marketing efforts? What are the results of those marketing efforts?

 

We will use the Marketing Fund for marketing and related purposes and costs. Medical coverage is primarily local. We use outside vendors and consultants to produce advertising. We are not required to spend any amount of advertising in the area or territory where any particular franchisee is located. We will maintain the brand website.

 

For large scale advertising efforts, we will attempt to choose coverage areas which cover our franchisees. For example, Dr. Laura is a national campaign on SiriusXM radio; as well, a 60 second and 30 second infomercial is currently in production which will air on national cable networks.

  • What programs for lead generation has the franchise company use? What are the results and costs? Do you consider them worthwhile? What have you added locally to generate business?

We currently use a sales team for inbound and outbound calls. We have relationships with referral sources. Online campaigns generating organic leads. On the ground local marketing.

 

 

 

  • Do you have any strong competitors in my area? If so, who? What do you think are my major competitive advantages that set iRecover apart?

There are over 25 million people seeking treatment each year in the United States. There are three major competitors in the Chicago area; however, there is no shortage of people in need. The iPad, small class sizes, private rooms, and alumni program are what sets us apart.

  • What is the fee structure for marketing assistance in Illinois? Do we need marketing? How do you find patients?

You are required to spend 3% of your gross sales on local marketing efforts; an additional 2% of sales are paid to iRecover Franchising for large scale marketing efforts.

Purchasing Power:

  • What do we purchase from the franchisor, or may you purchase locally?

Currently, the only requirement is to purchase the preloaded iPads from iRecover Franchising.

  • Are we allowed to purchase items from vendors outside the franchise company?

Other than the iPads – yes.

  • Does the franchisor use the collective buying power of the entire franchise to obtain discounts on supplies and/or inventory beyond what the individual franchisees could achieve? Can you give an example?

We continue to look for relationships to develop to allow for buying power of supplies for iRecover and our franchises.

Owners Role:

  • Currently, what is the owner’s typical hourly commitment to my business per week? Has the amount of time you work changed since the first few months you were open?

40+ hours per week – particularly more during the start up year.

  • Is my role in the business what you wanted/expected it to be? If not, how is it different?

It was as expected but continually evolves based on the business and the staffing.

Earnings/Investment:

  • What were my expectations for annual revenue? How long did it take you to realize those expectations?

2015-2016 Income for our California location was approximately $3.9 million.

  • How long were you in business before you reached breakeven?

Under 12 months.

  • What was my annual net profit, as a number or percentage of sales last year? Was that fairly consistent with prior years?

24.4%

  • What has the greatest impact on my annual net profit?

Staffing & Marketing costs

  • What will you do differently in my business this year? Why have you decided that?

We are continuing with the same. We are working on some new marketing efforts based on our feedback received.

  • What is franchise fee?   
    • $35,000
  • What’s the average receivables collection time? Cash flow?

Dependent on insurance vs. cash pay – could be 2-3 months.
Is there any litigation pending? – No

  • If franchisor goes out of business or sells is there any investment recovery?

No

  • How long is the contract?

10 years with two additional opportunities to renew for 5 years each.

  • Are all the franchise deals the same?
  • Additional franchises for the same franchisee will change the franchise fee.

Misc:

 

  • Are there protected territories?

No.

  • How big should the facility be? Min and max recommend size?

Minimum 4000 sq. ft. No max.

  • Is there a system in place for tracking patients?

Each location will be responsible for using an EHR which suits their needs.

  • What are the staffing requirements position and quantity?  Example: Doctors to janitors.

See brochure and FDD

  • Do we need a physician on staff?

At minimum: on-call

  • System for billing and collections. Is there a software package?

You will be responsible for finding a billing company to work with.

  • Examples of how the treatment process works. Average stay? Focused on drug, alcohol or mental illness?

We focus on all – drug, alcohol, & some mental illness.

Stays between 15-90+ days

  • Building requirements- facility type?  Realtor or assistance finding a building?

Lease a hotel/motel/seniors’ facility/hospital. Can use a commercial realtor.

  • Can we buy a center and convert to IRecover?

Yes

  • Does social economic area play a role?

As per our conversation, not specifically however it needs to appeal to those coming.

  • Type of security required so people don’t wonder off

24/7 staffing, security system with cameras, sensored doors

  • What happens if someone dies while in treatment? What is my responsibility?

As per our conversation.

Franchisor / Franchise owner Relations:

  • Is the franchise company supportive and caring about you and my operations?
    • Absolutely.

 

Conclusion:

  • If you had it to do over, would you decide to get into this business again? Why/why not?

Yes, we would. We love what we do and are surrounded by passionate people and motivation in seeing people change.