American Family Care
Bottom line
- Total investment $956K – $1.5M including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.8M/year (median $1.6M).
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 225 loans (below the industry average).
- System growing at 40.1% CAGR over 3 years with 386 total units — strong expansion trajectory.
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 American Family Care unit return on the cash you put in?
Unlevered ROIC · per unit
26%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 American Family Care units return on equity?
Equity IRR · 5-yr
26.2%
3.20× MOIC
Year-1 DSCR
3.16×
EBITDA ÷ debt service
Equity required
$14.9M
on $28.4M purchase
Total debt
$13.5M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate urgent care clinics providing walk-in medical services (acute illness/injury treatment, minor procedures, diagnostics). Day-to-day operations include managing clinical and administrative staff, patient intake/triage, provider scheduling, insurance billing, inventory management, and compliance with state/federal healthcare regulations.
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 · 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 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
Moderate-to-high risk: Healthcare franchise with active litigation, missing profitability disclosure, regulatory history (False Claims Act), and slowing unit growth masking unclear unit economics.
Score breakdown · what drove the 51 / 100 rating
- 01MEDNo Item 19 (Average Net Income) disclosed—impossible to validate 1.77M revenue translates to acceptable profit after 6% royalty, labor, and overhead in urgent care model
- 02HIGHActive litigation on franchise termination and contract breach (Boni-Graceful, Trovato) suggests franchisor enforcement issues or franchisee performance disputes
- 03MINORPrior False Claims Act settlement (Salters) indicates potential billing/compliance issues in healthcare vertical—critical regulatory risk
- 04HIGHGoing Concern = False is ambiguous but combined with litigation and missing profitability data raises sustainability questions
- 05MINORUnit growth of 10.5% YoY is modest for urgent care franchise (2023-2024 healthcare franchises averaged 12-15%); may indicate saturation or quality concerns
- 06MINORExclusivity dispute history (Purugganan) and master developer termination (Lavender) suggest franchisor-franchisee alignment issues and territorial conflicts
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
95 numbers
One-time purchase · CSV download · Validation questions included
FDD download
American Family Care · FDD (2025) PDF