A Better Solution In Home Care Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
A Better Solution In Home Care is a senior care franchise providing non-medical in-home care and companionship. Franchisees run local agencies, recruiting caregivers and managing scheduling, client care, and billing.
FranchiseVerdict summary · 2026
A A Better Solution In Home Care franchise requires a total initial investment of $127K – $235K, including a $55K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $811K[2]. SBA 7(a) loans show a 6.7% charge-off rate across 15 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $127K – $235K
- 73rd pct Senior Care
- Avg gross sales
- $811K
- 8th pct Senior Care
- Royalty
- 5.0%
- 3rd pct Senior Care
- Units
- 30
- 58th pct Senior Care
- SBA charge-off
- 6.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Senior Care · color = vs category peers
Green = favorable by >10% vs Senior Care avg · 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 $127K – $235K including a $55K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $811K/year (median $595K).
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better). SBA loan charge-off rate of 6.7% across 15 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- ABS Franchise Services, Inc.
- CEO title
- CEO & Founder
- Lillia Smith-Pratt
- Incorporated in
- California
- HQ
- 8929 Complex Drive, San Diego, California 92123
- Auditor
- CASHUK, WISEMAN, GOLDBERG, BIRNBAUM AND SALEM, LLP
- Audited financials
- Franchisor revenue
- $1.2M
- vs $1.1M prior year
Overview
About
- CEO
- Lillia Smith-Pratt
- Headquarters
- California
- Founded
- 2014
- FDD year
- 2026
- States available
- 15
Can you afford it, and what does the money buy?
Entry cost runs 30% below the typical senior care franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown21 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Feenot refundable | $55K | $55K | |
| Travel & Living Expenses While Attending Initial Trainingnot refundable | $3K | $5K | |
| Office & Real Estate Improvementsnot refundable | $0 | $2K | |
| Lease/Rent & Security Deposit (3 Months)not refundable | $3K | $8K | |
| Equipmentnot refundable | $2K | $9K | |
| Enhanced Support Servicesnot refundable | $0 | $5K | |
| Signagenot refundable | $500 | $4K | |
| Professional & General Liability Insurancenot refundable | $3K | $7K | |
| Employment Practices Liability Insurancenot refundable | $3K | $7K | |
| Fidelity Bond Coveragenot refundable | $0 | $500 | |
| Workers Compensation Depositnot refundable | $2K | $5K | |
| Business Licensesnot refundable | $50 | $3K | |
| Home Care Organization Licensing Fee (if required)not refundable | $500 | $6K | |
| Licensing Assistance By Approved Vendornot refundable | $4K | $6K | |
| Medicaid Credentialingnot refundable | $2K | $9K | |
| Legal Feesnot refundable | $500 | $8K | |
| Opening Inventory of Office Suppliesnot refundable | $2K | $3K | |
| Initial Marketing Materialsnot refundable | $3K | $5K | |
| Websitenot refundable | $2K | $2K | |
| Start-up Digital Marketing Package (6 months)not refundable | $19K | $25K | |
| Total initial investment | $127K | $235K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $127K – $235K
- Bottom third — review vs category
- Liquid capital req'd
- $26K – $65K
- Middle of category vs category
- Franchise fee
- $55K – $55K
- Bottom third — review vs category
- Royalty
- 5.0%
- formula · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $299 |
| Transfer fee | $8K |
| Renewal fee | $14K |
| Inventory (initial) | $2K – $3K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 45% below the senior care norm.
Source: FDD 2026 · Item 19
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
$154K
19.0% margin
Unlevered ROIC
68%
EBITDA / total invested capital
Payback
18 mo
cash-on-cash, unlevered
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one A Better Solution In Home Care unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
68%
Above the 30–60% band. Verify revenue is per-unit average
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 A Better Solution In Home Care units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.9M
on $9.7M purchase
Total debt
$7.8M
SBA $4.9M + senior + seller note
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
- Avg gross sales
- $811K
- Per unit, per year
- Median gross sales
- $595K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 23
- vs category median 22
- Range (low → high)
- $187K→$2.3M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 79 Senior Care brands
Revenue is 4.5x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $811K/year in gross sales. Median is $595K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 4.5x.
Fee burden
Total ongoing fee load of 6.0% — below the Senior Care average of 7.7%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 12.0% CAGR over 3 years across 30 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 averages
How A Better Solution In Home Care Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 30
- Opened
- 3
- Last reporting year
- Closed
- 2
- Turnover rate
- 7.1%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Net growth (3-yr)
- +12.0%
- Net unit change over 3 years
- 3-yr CAGR
- +12.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 1
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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.
Available to sell in · Item 12
- Washington
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 15
- Loan volume
- $2.6M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 6.7%
- 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)
- 93.3%
- 5-yr charge-off
- 33.3%
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 1
- Typical loan rate
- 7.2%
- avg rate to borrowers
- Franchised industry avg
- 7.5%
- brand beats franchise avg ↓
- Jobs supported
- 181
- 7.0 per loan
- Lender concentration
- 73%
- top lender's share
Borrower mix: 80% went to startups / new businesses, 20% to established operators
Franchise vs independent — in home health care services, franchised businesses charge off at 7.5% vs 11.5% for independents — franchising is associated with 35% lower SBA default risk in this category.
Top lenders financing A Better Solution In Home Care franchisees
Showing 3 of 5 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into A Better Solution In Home Care's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 9 states
- Startup risk premium and job creation velocity
- 5-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 6.7% — 58% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
One pending action: Day Venture Enterprises, LLC, Pamela Day and Kenneth Day v. A Better Solution in Home Care, Inc., et al. (San Diego Superior Court, Case No. 37-2024-00025405). Nashville, TN franchisees allege fraudulent/negligent inducement, breach of contract, false advertising, and related claims tied to an alleged 100% passive business model; seek rescission and damages. Trial set October 2026.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CASHUK, WISEMAN, GOLDBERG, BIRNBAUM AND SALEM, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 75 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 6.0% 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 | 2 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 300,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
One pending action: Day Venture Enterprises, LLC, Pamela Day and Kenneth Day v. A Better Solution in Home Care, Inc., et al. (San Diego Superior Court, Case No. 37-2024-00025405). Nashville, TN franchisees allege fraudulent/negligent inducement, breach of contract, false advertising, and related claims tied to an alleged 100% passive business model; seek rescission and damages. Trial set October 2026.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 40 hrs
- Training location
- Online or San Diego, CA (and franchise territory/offices)
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- SwyftOps
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SwyftOps
Item 20 · call current owners
Franchisee Contacts
23 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
A Better Solution In Home Care · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a A Better Solution In Home Care franchise?
The total investment to open a A Better Solution In Home Care franchise ranges from $127K – $235K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do A Better Solution In Home Care franchise owners earn?
According to Item 19 of the A Better Solution In Home Care FDD, the average gross sales per unit is $811K. The median is $595K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the A Better Solution In Home Care 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 A Better Solution In Home Care FDD and qualifies whose outlets they describe.
What is A Better Solution In Home Care's franchise failure rate?
Based on SBA 7(a) loan data, A Better Solution In Home Care has a charge-off rate of 6.7% across 15 loans, meaning 6.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many A Better Solution In Home Care franchise locations are there?
As of their most recent FDD filing, A Better Solution In Home Care has 30 total units in the United States, including 28 franchised units and 2 company-owned units. 3 new units were opened in the latest reporting year.
Is A Better Solution In Home Care a good franchise to buy?
FranchiseVerdict rates A Better Solution In Home Care as a A-grade franchise with a verdict score of 75 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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Other Senior Care franchises
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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.