ATC Healthcare ServicesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A ATC Healthcare Services franchise requires a total initial investment of $159K – $303K, including a $50K franchise fee and an ongoing 4.5% royalty[2]. Per the 2026 FDD, average unit revenue was $3.1M[2]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $159K – $303K
- 42nd pct Business Serv…
- Avg gross sales
- $3.1M
- 27th pct Business Serv…
- Royalty
- 4.5%
- 6th pct Business Serv…
- Units
- 35
- 27th pct Business Serv…
- SBA default
- N/A
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 13.4x in gross revenue, well above the typical 1.5-2.5x range.
Franchising since 1996. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $159K – $303K including a $50K franchise fee, 4.5% ongoing royalty.
- Average unit revenue of $3.1M/year (median $1.5M).
- Verdict F (Bottom Quintile) with a risk score of 79/100.
- 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
- Legal entity
- ATC Healthcare Services, LLC
- Parent company
- ATC Healthcare, Inc.
- Incorporated in
- GA
- HQ
- 1 Hollow Lane, Suite 201, Lake Success, NY 11042
- Auditor
- Hoberman & Lesser, CPAs, LLP
- Audited financials
- Franchisor revenue
- $142K
- vs $142K prior year
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.
- CEO
- David Savitsky
- Headquarters
- NY
- Founded
- 1985
- FDD year
- 2026
- States available
- 17
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.
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
$542K
17.5% margin
Unlevered ROIC
161%
EBITDA / total invested capital
Payback
7 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $159K – $303K
- Near category avg vs category
- Liquid capital req'd
- $71K – $141K
- Near category avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 4.5%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 46.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.5% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $3K |
| Transfer fee | $15K |
| Renewal fee | $5K |
| 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.
Financial Performance
- Avg gross sales
- $3.1M
- Per unit, per year
- Median gross sales
- $1.5M
- Item 19 type
- Average and Median Revenue and Gross Margin Percent
- Sample size
- 33 units
- vs category median 32
- Range (low → high)
- $106K→$13.8M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 3 / 5 · above
Compared against 360 Business Services brands
Revenue is 13.4x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Business Services averages
How ATC Healthcare Services Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 35
- Opened
- 1
- Last reporting year
- Closed
- 1
- Turnover rate
- 2.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- -47.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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.
Audited financials (Item 21)
Yes · Hoberman & Lesser, CPAs, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 79 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Population based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 42 hrs
- On-the-job training
- 110 hrs
Items 5 & 11
Franchisor Support
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 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. 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 F-grade franchise with a risk score of 79 out of 100, 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.