FranchiseVerdict
Home Instead logo
FV-01209·STRONGExcellent95

Home Instead

Health & Wellness - Senior CareFranchising since 1995Website
Investment
$91K – $270K
44th pct Senior Care
Avg revenue
$2.6M
69th pct Senior Care
Royalty
5.0%
6th pct Senior Care
Units
625
98th pct Senior Care
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $91K – $270K including a $54K franchise fee, 5.0% ongoing royalty.
  • Average unit revenue of $2.6M/year (median $2.3M).
  • Rated STRONG with a risk score of 43/100. SBA loan default rate of 0.0% across 206 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Home Instead, Inc.
Parent company
Honor Technology, Inc.
Incorporated in
Nebraska
HQ
13323 California Street, Omaha, Nebraska 68154
Auditor
Deloitte & Touche LLP
Audited financials
Franchisor revenue
$131.6M
vs $157.5M prior year

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 Home Instead unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $2,609,616
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: personal services
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $91K–$270K
Working capital
$
FDD reports $29K–$134K

Unlevered ROIC · per unit

229%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.

Store EBITDA · annual
$600K
EBITDA margin
23.0%
Total invested
$262K
Payback
5 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Home Instead units return on equity?

Edit assumptions

Equity IRR · 5-yr

24.1%

2.94× MOIC

Year-1 DSCR

3.58×

EBITDA ÷ debt service

Equity required

$24.2M

on $41.8M purchase

Total debt

$17.5M

SBA $5.0M + senior + seller note

SBA 7(a) request ($20.9M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

Home Instead franchisees operate in-home senior care services, employing and scheduling caregivers to provide non-medical companionship, personal care, and support services to elderly clients in their homes. Day-to-day operations involve caregiver recruitment/training, client scheduling coordination, quality assurance visits, billing/collections management, and local marketing to acquire new clients.

CEO
Seth Sternberg
Founded
1994
FDD year
2025
States available
50

Item 7 · what it costs

The Vitals

Total investment
$91K – $270K
All-in to open one unit
Liquid capital
$29K – $134K
Cash you must have on hand
Franchise fee
$54K
Royalty
5.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$2.6M
Per unit, per year
Median gross sales
$2.3M
Item 19 type
Average and Median Gross Sales
Sample size
603 units
vs category median 23 · large
Range (low → high)
$122K$10.9M
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank69th
vs Health & Wellness - Senior Care peers
Investment cost rank44th
Lower investment ranks lower (better)
Royalty rate rank6th
Lower royalty = lower percentile (better)
Unit count rank98th
vs Health & Wellness - Senior Care peers
Risk score rank15th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
625
Opened
17
Last reporting year
Closed
10
Turnover rate
1.6%
Company-owned
6
Corporate units in the system
% franchised
99%
vs corporate-owned
Net growth (yr3)
+0.5%
Net unit change last year
3-yr CAGR
+0.8%
Compounded over last 3 years
2023
619+6
Franchised units
2024
616
Franchised units
2025
614
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 9 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 9 states
Not registered

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.

Total loans
206
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

43
Risk · 0-100
STRONG43 / 100

Home Instead presents moderate-to-high risk due to stagnant growth, undisclosed profitability data, ongoing litigation history, and unverified revenue claims that require substantial validation before investment.

Score breakdown · what drove the 43 / 100 rating

  1. 01MEDStagnant unit growth (0.5% YoY) suggests mature/declining system with limited expansion opportunity
  2. 02MINORNo Item 19 financial disclosure limits ability to validate $2.6M average revenue claim and actual profitability
  3. 03HIGHMultiple litigation cases involving breach of non-compete and wrongful termination indicate franchisor-franchisee relationship strain
  4. 04MINORHigh initial investment ($54K-$270K) relative to stated 5% royalty with unverified net income creates profitability uncertainty
  5. 05MEDService-based model dependent on labor costs and local hiring, with no disclosed labor economics or staffing efficiency metrics
  6. 06MINORFranchisor winning wrongful termination counterclaims suggests potential aggressive contract enforcement or termination practices

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Geographic
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
3
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Nebraska

Item 11

Training & Operations

Classroom training
28 hrs
On-the-job training
16 hrs
POS system
WellSky or Care Platform
Operating tech stack

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

62 numbers

Locked
(760) 639-••••
CA
(650) 691-••••
CA
(949) 347-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

Home Instead · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above