2nd Family Franchise Cost, Revenue & Review 2026
- Investment
- $120K – $218K
- Disclosed sales
- $1.7M
- gross sales, not profit
- SBA charge-off
- Under 10 loans (3)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
2nd Family is a senior care franchise providing non-medical in-home companionship and personal-care assistance. Franchisees run local agencies, recruiting caregivers and managing scheduling, client care, and billing.
FranchiseVerdict summary · 2026
A 2nd Family franchise requires a total initial investment of $120K – $218K, including a $60K franchise fee and an ongoing 5.5% royalty[2]. Per the 2026 FDD, average revenue per franchisee was $1.7M. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $120K – $218K
- 67th pct Senior Care
- Avg gross sales
- $1.7M
- Per franchisee, not per outletIncl. company outlets
- Royalty
- 5.5%
- 53rd pct Senior Care
- Units
- 25
- 50th pct Senior Care
- SBA charge-off
- N/A
Quick verdict · Senior Care · color = vs category peers
Green = favorable by >10% vs Senior Care median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $120K – $218K including a $60K franchise fee, 5.5% ongoing royalty.
- RETURNSAverage revenue per franchisee of $1.7M/year (median $1.6M) (includes company-owned outlets). Note: this is gross profit, not take-home income. Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- RISKVerdict A (Strongest tier), verdict score 76/100 (higher is better).
- GROWTHPositive: net +19 franchised outlets in the latest year (19 opened, 0 closed); 23 signed but not yet open (Item 20).
- GROWTHSystem growing at 300.0% CAGR over 3 years with 25 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- 2nd Family Franchising, LLC
- Parent company
- 2nd Family Holdings, LLC
- FDD Item 1, page 6 of the 2026 FDD
- Predecessor
- None
- Prior franchisor entity
- CEO title
- President
- Chadmark Tracey
- Incorporated in
- Maryland
- HQ
- 1532 Liberty Road, Suite 105, Eldersburg, Maryland 21784
- Auditor
- Reese CPA LLC
- Audited financials
- Franchisor revenue
- $765K
- vs $305K prior year
Overview
About
- CEO
- Chadmark Tracey
- Headquarters
- Maryland
- Founded
- 2017
- FDD year
- 2026
- States available
- 11
Can you afford it, and what does the money buy?
Entry cost runs 23% above the typical senior care franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 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 | $118K |
| Total initial investment | $120K | $218K |
Source: 2nd Family 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $120K – $218K
- Middle of category vs category
- Liquid capital req'd
- $20K – $40K
- Top 40% of category vs category
- Franchise fee
- $60K – $60K
- Bottom third — review vs category
- Royalty
- 5.5%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 5.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $5K |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $2K – $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.
What do units actually make?
Average unit sales run 62% above the senior care norm.
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Includes company-owned outlets
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for 2nd Family until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$199K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one 2nd Family unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Includes company-owned outlets
- Avg gross sales
- $1.7M
- Per franchisee, per year — not per outlet
- Median gross sales
- $1.6M
- Per franchisee, not per outlet
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical
- Sample size
- 5 franchisees
- vs category median 22 · small
- Range (low → high)
- $531K→$3.1MCited, not corroborated — printed on page 40 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 8 / 10
- vs category median 4 / 10 · above
Compared against 79 Senior Care brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
The average franchisee generates $1.7M/year in gross sales. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 5.5% — below the Senior Care median of 7.0%.
Disclosure
Transparency score 8/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence. Sample size of 5 franchisees — treat as directional only.
Operator retention
System expanding at 300.0% CAGR over 3 years across 25 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Senior Care medians
How 2nd Family Compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Senior Care brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 25
- Opened
- 19
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (3-yr)
- Outlier (see FDD)
- Likely small-sample artifact
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 23
- 0.92 per open outlet · Item 20 Table 5
- Projected new
- 23
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 11 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
11
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
1 current owner across 1 state.
- OF 1
Counts only, from the list the franchisor prints in Item 20; 25 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
- Under 10 loans (3)
- Insufficient SBA coverage: 3 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (3)
- 5-yr charge-off
- Under 10 loans (3)
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Declining franchise system with unverified financial claims, high investment variability, and shrinking unit count creates elevated risk despite no litigation.
Why this reads harsher than the A grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Reese CPA LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 76 / 100 verdict
- 01MEDUnit count declined 16.7% YoY (6 units) indicates system contraction and potential franchisee dissatisfaction
- 02MEDHigh investment range ($119K-$521K) with only 6 operating units suggests limited proven scalability and higher per-unit risk
- 03MINOR5.5% royalty on $1.18M average revenue = ~$65K annual royalty cost, consuming 19% of average net income ($338K)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 30,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Arbitration location | Maryland |
| Jury trial waiver | No |
| Governing law | Maryland |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 0 hrs
- Training location
- Eldersburg, Maryland (headquarters) / webinar
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee proposes, franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Kinnser ADL
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Kinnser ADL
Item 20 · call current owners
Franchisee Contacts
26 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 – $218K, 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 $1.7M. The median is $1.6M. Important context: Averaged per franchisee, not per outlet - not comparable with per-outlet figures; Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns 2nd Family?
2nd Family is franchised by 2nd Family Franchising, LLC. Its parent company is 2nd Family Holdings, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the 2nd Family FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the 2nd Family FDD and qualifies whose outlets they describe.
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 25 total units in the United States, including 24 franchised units and 1 company-owned units. 19 new units were opened in the latest reporting year.
Is 2nd Family a good franchise to buy?
FranchiseVerdict rates 2nd Family as a A-grade franchise with a verdict score of 76 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
Are you the franchisor?
If you represent 2nd Family, you can request corrections or provide updated information.
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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.