A Better Solution In Home Care
Bottom line
- Total investment $127K – $235K including a $55K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $811K/year (median $595K). Estimated payback in 0.3 years.
- Rated MODERATE with a risk score of 58/100. SBA loan default rate of 0.0% across 30 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one A Better Solution In Home Care unit return on the cash you put in?
Unlevered ROIC · per unit
86%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 A Better Solution In Home Care units return on equity?
Equity IRR · 5-yr
36.2%
4.69× MOIC
Year-1 DSCR
2.27×
EBITDA ÷ debt service
Equity required
$4.6M
on $13.8M purchase
Total debt
$9.1M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate in-home elder care and non-medical home care services, managing caregiver recruitment, scheduling, client acquisition, and service delivery. Day-to-day operations involve hiring and training caregivers, managing client relationships, handling billing/insurance claims, and ensuring compliance with state healthcare regulations. The litigation specifically disputes whether this is truly a 'passive' business model.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
This home care franchise faces elevated risk due to active fraud litigation, minimal system growth, corporate going concern issues, and alleged misrepresentation of business model passivity to franchisees.
Score breakdown · what drove the 58 / 100 rating
- 01HIGHActive litigation from Nashville franchisees alleging fraud and misrepresentation regarding '100% passive business model' claims
- 02MINORAnemic unit growth of 3.7% YoY suggests system stagnation or contraction despite 30-unit base
- 03HIGHGoing Concern status is FALSE, indicating potential financial viability concerns at corporate level
- 04MINORHigh initial investment ($126,890-$235,350) paired with modest average net income ($542,813.50 across all units) creates long payback period and ROI risk
- 05HIGHPending litigation creates liability exposure and suggests marketing claims may have been overstated to franchisees
- 06MINOR5% royalty on gross revenues provides minimal margin cushion in home care industry with tight labor economics
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
26 numbers
One-time purchase · CSV download · Validation questions included
FDD download
A Better Solution In Home Care · FDD (2026) PDF