2nd FamilyFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A 2nd Family franchise requires a total initial investment of $120K – $522K, including a $60K franchise fee and an ongoing 5.5% royalty[2]. Per the 2025 FDD, average unit revenue was $1.2M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $120K – $522K
- 65th pct Senior Care
- Avg gross sales
- $1.2M
- 39th pct Senior Care
- Royalty
- 5.5%
- 36th pct Senior Care
- Units
- 6
- 23rd pct Senior Care
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Senior Care · color = vs category peers
Green = >15% above Senior Care avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.7x in gross revenue, well above the typical 1.5-2.5x range.
The system contracted 17% year-over-year. Investigate why units are closing.
106% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $120K – $522K including a $60K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $1.2M/year (median $786K), with an estimated 106% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 27/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- 2nd Family Franchising, LLC
- Parent company
- 2nd Family Holdings, LLC
- Incorporated in
- MD
- HQ
- 1532 Liberty Road, Suite 105, Eldersburg, Maryland 21784
- Auditor
- Reese CPA LLC
- Audited financials
- Franchisor revenue
- $210K
- vs $190K prior year
Overview
About
2nd Family franchisees operate [service/retail establishment]. Day-to-day operations involve [managing staff/customer interactions/service delivery], maintaining brand standards, and generating revenue through [primary business model]. Franchisees are responsible for local marketing, financial management, and customer relationship building within their protected territory.
- CEO
- Chadmark Tracey
- Headquarters
- MD
- Founded
- 2017
- FDD year
- 2025
- States available
- 4
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $20K | $40K |
| Equipment, build-out, other | $40K | $422K |
| Total initial investment | $120K | $522K |
Source: 2nd Family 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$195K
16.5% margin
Unlevered ROIC
56%
EBITDA / total invested capital
Payback
22 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $120K – $522K
- Near category avg vs category
- Liquid capital req'd
- $20K – $40K
- Better than avg vs category
- Franchise fee
- $40K – $60K
- Below avg, review vs category
- Royalty
- 5.5%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0
- Total fee load
- 5.5%
- vs 9–13% typical
- Payback period
- 0.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Technology fee | $1K |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 5.5% of rev |
A 5.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $786K
- Avg p&l bottom line
- $339K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 105.6%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Historical Performance
- Sample size
- 4 units
- vs category median 22 · small
- Range (low → high)
- $364K→$2.8M
- Cohort dispersion (min → max)
- Transparency
- 8 / 5
- vs category median 4 / 5 · above
Compared against 70 Senior Care brands
vs Senior Care averages
How 2nd Family Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 0
- Last reporting year
- Closed
- 1
- Turnover rate
- 16.7%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 83%
- vs corporate-owned
- Net growth (yr3)
- -16.7%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- $561K
- Median loan
- $200K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into 2nd Family's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining franchise system with unverified financial claims, high investment variability, and shrinking unit count creates elevated risk despite no litigation.
Audited financials (Item 21)
Yes · Reese CPA LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 27 / 100 rating
- 01MEDUnit count declined 16.7% YoY (6 units) indicates system contraction and potential franchisee dissatisfaction
- 02HIGHNo Item 19 (Going Concern = False) means franchisor provided no financial performance representations, making revenue/income claims unverifiable
- 03MEDHigh investment range ($119K-$521K) with only 6 operating units suggests limited proven scalability and higher per-unit risk
- 04MINOR5.5% royalty on $1.18M average revenue = ~$65K annual royalty cost, consuming 19% of average net income ($338K)
- 05MINORWide investment spread ($401K variance) indicates inconsistent unit economics or location-dependent performance
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Zip codes |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 26 hrs
- POS system
- Kinnser ADL
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Kinnser ADL
Item 20 · call current owners
Franchisee Contacts
20 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
2nd Family · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a 2nd Family franchise?
The total investment to open a 2nd Family franchise ranges from $120K – $522K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do 2nd Family franchise owners earn?
According to Item 19 of the 2nd Family FDD, the average gross sales per unit is $1.2M. The median is $786K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is 2nd Family's franchise failure rate?
SBA 7(a) loan charge-off data is not available for 2nd Family (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many 2nd Family franchise locations are there?
As of their most recent FDD filing, 2nd Family has 6 total units in the United States, including 5 franchised units and 1 company-owned units.
Is 2nd Family a good franchise to buy?
FranchiseVerdict rates 2nd Family as a A-grade franchise with a risk score of 27 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.