ATC Healthcare Services
Bottom line
- Total investment $159K – $303K including a $50K franchise fee, 45.0% ongoing royalty.
- Average unit revenue of $3.1M/year (median $1.5M).
- Rated MODERATE with a risk score of 60/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- System contracting at -47.0% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 ATC Healthcare Services unit return on the cash you put in?
Unlevered ROIC · per unit
-212%
Negative
Overview
About
Franchisees operate healthcare staffing businesses specializing in temporary, temp-to-hire, and permanent placements of clinical and administrative healthcare professionals. Day-to-day operations include recruiting candidates, matching them with client facilities, managing placements, billing clients, and handling payroll and compliance. Success depends heavily on building relationships with hospitals, clinics, and healthcare networks while maintaining thin margins amid high royalty obligations.
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 · 11 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
ATC Healthcare presents a caution-to-high-risk profile due to unsustainable royalty structures, undisclosed profitability data, small system size, and lack of earnings claims documentation.
Score breakdown · what drove the 60 / 100 rating
- 01MINORExtremely high royalty rate of 45% on temp/temp-to-hire gross margin leaves minimal profitability after operating costs
- 02MEDNet income not disclosed in FDD — inability to verify franchisee profitability claims despite $3.1M average revenue
- 03MEDOnly 35 units system-wide with unknown growth trajectory suggests limited scale and potential stagnation
- 04MINORHigh initial investment ($158.5K-$302.5K) paired with opaque profitability creates significant capital-at-risk scenario
- 05MINORNo Item 19 financial performance representation — franchisor provides no earnings claims or success metrics
- 06MINORStaffing industry commoditization risk — temp/perm placement market highly competitive with low barriers to entry
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
29 numbers
One-time purchase · CSV download · Validation questions included
FDD download
ATC Healthcare Services · FDD (2026) PDF