Bottom line
- Total investment $108K – $204K including a $58K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $5.4M/year. Estimated payback in 0.1 years.
- Rated MODERATE with a risk score of 60/100.
- Emerging franchise — only 1 year of franchising with 1 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Butterfly Home Care unit return on the cash you put in?
Unlevered ROIC · per unit
310%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Butterfly Home Care units return on equity?
Equity IRR · 5-yr
26.5%
3.24× MOIC
Year-1 DSCR
3.11×
EBITDA ÷ debt service
Equity required
$14.1M
on $27.2M purchase
Total debt
$13.2M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate in-home care services, managing caregiver recruitment, scheduling, client assessment, and service delivery for elderly and disabled clients. Day-to-day responsibilities include client intake, caregiver supervision, quality assurance, billing/insurance management, and compliance with healthcare regulations. Revenue is primarily derived from hourly service billing to clients, insurance companies, and government programs (Medicare/Medicaid).
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 · 14 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage home care franchise with unproven unit growth, undisclosed going concern status, and absence of financial performance representations presents elevated investment risk despite attractive unit economics.
Score breakdown · what drove the 60 / 100 rating
- 01MEDOnly 1 franchised unit disclosed with unknown growth trajectory — suggests early-stage system with unproven scalability
- 02HIGHGoing Concern status is FALSE — indicates potential financial instability or uncertainty at franchisor level
- 03MINORItem 19 (financial performance representations) appears absent — no validated earnings claims to support $1.97M net income average
- 04MINORHigh franchise fee ($58,000) relative to single operating unit — raises questions about franchisor's revenue model sustainability
- 05MINORWide investment range ($108,150–$204,100) with only 1 unit suggests poor data standardization and operational inconsistency
- 06MINOR6% royalty on Net Billings (not Gross Revenue) — favorable to franchisee but may indicate franchisor cash flow vulnerability
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Butterfly Home Care · FDD (2025) PDF