American Family Care Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
American Family Care (AFC) is an urgent-care franchise providing walk-in treatment for minor illness and injury, diagnostics, and minor procedures. Franchisees run clinics managing medical and admin staff, patient intake, and insurance billing.
FranchiseVerdict summary · 2026
A American Family Care franchise requires a total initial investment of $956K – $1.5M, including a $60K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.8M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 121 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $956K – $1.5M
- 80th pct Healthcare
- Avg gross sales
- $1.8M
- 24th pct Healthcare
- Royalty
- 6.0%
- 11th pct Healthcare
- Units
- 386
- 76th pct Healthcare
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare 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 $956K – $1.5M including a $60K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.8M/year (median $1.6M).
- RISKVerdict A (Strongest tier), verdict score 86/100 (higher is better). SBA loan charge-off rate of 0.0% across 121 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 40.1% CAGR over 3 years with 386 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- AFC Franchising, LLC
- Parent company
- American Family Care, LLC (AFCLLC)
- Ultimate parent
- AFC Parent Holdings, LLC
- Predecessor
- Doctors Express Franchising, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Jeremy Morgan
- Incorporated in
- AL
- HQ
- 3700 Cahaba Beach Road, Birmingham, Alabama 35242
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $39.5M
- vs $39.5M prior year
Overview
About
- CEO
- Jeremy Morgan
- Headquarters
- AL
- Founded
- 2013
- FDD year
- 2025
- States available
- 29
Can you afford it, and what does the money buy?
Entry cost runs 198% above the typical healthcare franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $200K | $500K |
| Equipment, build-out, other | $696K | $960K |
| Total initial investment | $956K | $1.5M |
Source: American Family Care 2025 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
- $956K – $1.5M
- Bottom third — review vs category
- Liquid capital req'd
- $200K – $500K
- Bottom third — review vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $275 |
| Transfer fee | $10K |
| Renewal fee | $6K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 26% above the healthcare norm.
Source: FDD 2025 · 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
$319K
18.0% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
5.0 yrs
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 American Family Care unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
20%
Below the 30–60% attractive-franchise band
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 American Family Care units return on equity?
Equity IRR · 5-yr
29.8%
3.69× MOIC
Year-1 DSCR
2.70×
EBITDA ÷ debt service
Equity required
$8.7M
on $19.5M purchase
Total debt
$10.9M
SBA $5.0M + 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: 2025 FDD
Financial Performance
- Avg gross sales
- $1.8M
- Per unit, per year
- Median gross sales
- $1.6M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- cash revenue
- Sample size
- 270
- vs category median 20 · large
- Range (low → high)
- $134K→$4.8M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 162 Healthcare brands
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 $1.8M/year in gross sales. Revenue-to-investment ratio: 1.4x.
Fee burden
Total ongoing fee load of 7.0% — below the Healthcare average of 8.8%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 40.1% CAGR over 3 years across 386 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 Healthcare averages
How American Family Care Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 386
- Opened
- 37
- Last reporting year
- Closed
- 1
- Terminated
- 7
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.3%
- Company-owned
- 82
- Corporate units in the system
- % franchised
- 79%
- vs corporate-owned
- Net growth (3-yr)
- +40.1%
- Net unit change over 3 years
- 3-yr CAGR
- +40.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 42
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 5
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 31 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 121
- Loan volume
- $140.4M
- Median loan
- $1.2M
- average
- 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
- 0.0%
- Loans approved 2021+
- Active lenders
- 27
- Defaults
- 0
Vintage analysis
American Family Care charge-off rate by loan vintage
Top lenders financing American Family Care franchisees
Showing 3 of 27 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 American Family Care's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 16 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
With a 0.0% charge-off rate across 121 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% 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
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.
Litigation (Item 3)
1 pending action (franchisor v. former franchisee for non-compete enforcement, currently stayed due to bankruptcy filing); 3 prior actions settled including False Claims Act qui tam ($1.41M total settlement), master development agreement dispute ($1M), and master development agreement fraud claim ($6.5M)
Largest disclosed settlement: $6,500,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 86 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 4 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 9 |
| Mandatory arbitration | Yes |
| Arbitration location | Hoover, Alabama (within 50 miles of principal place of business) |
| Jury trial waiver | Yes |
| Governing law | AL |
| Litigation count | 4 |
View Item 3 litigation summary
1 pending action (franchisor v. former franchisee for non-compete enforcement, currently stayed due to bankruptcy filing); 3 prior actions settled including False Claims Act qui tam ($1.41M total settlement), master development agreement dispute ($1M), and master development agreement fraud claim ($6.5M)
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 78 hrs
- Training location
- Birmingham, Alabama (headquarters)
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Experity
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Experity
Item 20 · call current owners
Franchisee Contacts
378 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
American Family Care · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a American Family Care franchise?
The total investment to open a American Family Care franchise ranges from $956K – $1.5M, 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 American Family Care franchise owners earn?
According to Item 19 of the American Family Care FDD, the average gross sales per unit is $1.8M. The median is $1.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the American Family 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 American Family Care FDD and qualifies whose outlets they describe.
What is American Family Care's franchise failure rate?
Based on SBA 7(a) loan data, American Family Care has a charge-off rate of 0.0% across 121 loans, meaning 0.0% 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 American Family Care franchise locations are there?
As of their most recent FDD filing, American Family Care has 386 total units in the United States, including 304 franchised units and 82 company-owned units. 37 new units were opened in the latest reporting year.
Is American Family Care a good franchise to buy?
FranchiseVerdict rates American Family Care as a A-grade franchise with a verdict score of 86 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
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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.