ATC Healthcare Services Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
ATC Healthcare Services is a medical staffing franchise placing nurses and clinical professionals with hospitals and healthcare facilities. Franchisees run staffing offices, recruiting candidates and managing placements, billing, and payroll.
FranchiseVerdict summary · 2026
A ATC Healthcare Services franchise requires a total initial investment of $159K – $303K, including a $50K franchise fee. Per the 2026 FDD, average unit revenue was $3.1M[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $159K – $303K
- 50th pct Business Serv…
- Avg gross sales
- $3.1M
- 20th pct Business Serv…
- Royalty
- N/A
- Units
- 35
- 32nd pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services 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 $159K – $303K including a $50K franchise fee.
- RETURNSAverage unit revenue of $3.1M/year (median $1.5M).
- RISKVerdict C (Average), verdict score 40/100 (higher is better).
- DECLINESystem 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
Corporate structure & franchisor financials
- Legal entity
- ATC Healthcare Services, LLC
- Parent company
- ATC Healthcare, Inc.
- CEO title
- Chief Executive Officer (CEO) and Director
- David Savitsky
- Incorporated in
- GA
- HQ
- 1 Hollow Lane, Suite 201, Lake Success, NY 11042
- Auditor
- Hoberman & Lesser, CPAs, LLP
- Audited financials
- Franchisor revenue
- $142.0M
- vs $141.7M prior year
Overview
About
- CEO
- David Savitsky
- Headquarters
- NY
- Founded
- 1985
- FDD year
- 2026
- States available
- 17
Can you afford it, and what does the money buy?
Entry cost runs 17% below the typical business services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $71K | $141K |
| Equipment, build-out, other | $37K | $112K |
| Total initial investment | $159K | $303K |
Source: ATC Healthcare Services 2026 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
- $159K – $303K
- Middle of category vs category
- Liquid capital req'd
- $71K – $141K
- Middle of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 45% of gross margin for temporary and temp-to-hire perm p…
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 46.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Inventory (initial) | $1K – $1K |
| Total fee load | 46.0% of rev |
At 46.0% total fee load, roughly $1425K per year goes to the franchisor before you pay a single operating expense.
What do units actually make?
Average unit sales run 108% above the business services 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
$496K
16.0% margin
Unlevered ROIC
147%
EBITDA / total invested capital
Payback
8 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 ATC Healthcare Services unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
147%
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 ATC Healthcare Services units return on equity?
Equity IRR · 5-yr
26.3%
3.22× MOIC
Year-1 DSCR
3.14×
EBITDA ÷ debt service
Equity required
$14.5M
on $27.9M purchase
Total debt
$13.4M
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: 2026 FDD
Financial Performance
- Avg gross sales
- $3.1M
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
- Median gross sales
- $1.5M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- revenue by cohort
- Sample size
- 33
- vs category median 35
- Range (low → high)
- $106K→$13.8M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 296 Business Services brands
Revenue is 13.4x 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 $3.1M/year in gross sales. Median is $1.5M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 13.4x.
Fee burden
Total ongoing fee load of 46.0% — above the Business Services average of 11.9%.
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 contracting at -47.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Business Services averages
How ATC Healthcare Services Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 35
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -47.0%
- Net unit change over 3 years
- 3-yr CAGR
- -47.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 14
- Closed (3yr)
- 2
- Terminated (3yr)
- 34
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 4
- Franchisor bought back
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 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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $25K
- Median loan
- $25K
- average
- Charge-off rate
- N/A
- limited sample (1 loan) — rate not shown below 10
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
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Hoberman & Lesser, CPAs, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 verdict
- 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
- 05MINORStaffing industry commoditization risk — temp/perm placement market highly competitive with low barriers to entry
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 46.0% 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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 500,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 75 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Nassau County, New York |
| Jury trial waiver | Yes |
| Governing law | NY |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 42 hrs
- On-the-job training
- 110 hrs
- Training location
- Lake Success, NY (or telephone/remote)
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Offered
- Item 10
- POS system
- ATS (Applicant Tracking System) + HRIS + scheduling app
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ATS (Applicant Tracking System) + HRIS + scheduling app
Item 20 · call current owners
Franchisee Contacts
29 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ATC Healthcare Services · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a ATC Healthcare Services franchise?
The total investment to open a ATC Healthcare Services franchise ranges from $159K – $303K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do ATC Healthcare Services franchise owners earn?
According to Item 19 of the ATC Healthcare Services FDD, the average gross sales per unit is $3.1M. The median is $1.5M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the ATC Healthcare Services 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 ATC Healthcare Services FDD and qualifies whose outlets they describe.
What is ATC Healthcare Services's franchise failure rate?
SBA 7(a) loan charge-off data is not available for ATC Healthcare Services (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many ATC Healthcare Services franchise locations are there?
As of their most recent FDD filing, ATC Healthcare Services has 35 total units in the United States, including 35 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is ATC Healthcare Services a good franchise to buy?
FranchiseVerdict rates ATC Healthcare Services as a C-grade franchise with a verdict score of 40 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.