Assisted Living Locators
Bottom line
- Total investment $74K – $94K including a $50K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $130K/year (median $94K). Estimated payback in 3.4 years.
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 53 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Assisted Living Locators unit return on the cash you put in?
Unlevered ROIC · per unit
28%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Assisted Living Locators units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$338K
on $1.7M purchase
Total debt
$1.4M
SBA $0.8M + senior + seller note
Overview
About
Franchisees operate as referral and placement agencies connecting seniors and their families to assisted living facilities, memory care communities, and in-home care providers within their protected territory. Day-to-day work involves lead generation, client consultations, facility assessments, marketing to healthcare providers and families, and earning placement commissions from partner facilities. The model is service-based with minimal inventory, relying on relationships, local marketing, and lead conversion to drive revenue.
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 · 23 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
Assisted Living Locators presents moderate-to-cautious risk due to stagnant unit growth, litigation disputes, thin profit margins, and franchisor going concern issues, offset only by low initial investment and protected territory.
Score breakdown · what drove the 46 / 100 rating
- 01MEDSystem contracting sharply: only 0.8% YoY unit growth with 133 units suggests stagnation or decline; mature systems typically grow 3-5%
- 02HIGHLitigation pattern: two separate legal actions (one pending arbitration, one settled) indicate franchisor-franchisee disputes over compliance and post-termination conduct, signaling enforcement issues
- 03MINORThin profit margins: $25,005 average net income on $130,099 revenue equals only 19.2% net margin after 8% royalty (10.4% of gross), leaving minimal buffer for owner salary and reinvestment
- 04MINORHigh royalty burden relative to profitability: 8% royalty on gross (not net) collected revenues creates cash flow risk if collections slow, with no Item 19 provided to validate earnings claims
- 05HIGHGoing Concern flag: true status raises questions about franchisor financial stability and ability to support franchisees long-term
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
61 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Assisted Living Locators · FDD (2022) PDF