Home Instead Franchise Cost & 2026 FDD Data
91/100
Strongest tier
91 this brand58 Senior Care medianlikely 87–95 (high confidence)
Higher is better · an editorial assessment, not investment advice
#47 of 3,068 graded brands
Why an A: Helped by financial health, unit economics, scale, legal record and transparency. See all six factors
- Total investment
- $93K – $351K
- Avg gross sales
- $2.8M
- “All Home Instead U.S. Franchised Businesses (2025)”, 611 outlets; not profit
- SBA charge-off
- 2.7%
1 in 37 SBA 7(a) loans to Home Instead owners charged off (5 of 186 resolved loans, approved since FY1991); Senior Care median 8.8%. Loans approved FY2014–FY2018: 2 of 111 resolved loans charged off (1.8%); newer loans have not had time to default, so this is not a trend.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
Home Instead is an in-home senior-care franchise providing non-medical companionship, personal care, and support to elderly clients at home. Franchisees run an agency recruiting caregivers, coordinating schedules, and managing quality and billing.
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Home Instead franchise requires a total initial investment of $93K – $351K, including a $54K – $56K franchise fee. Once open, the ongoing royalty is 5.0%. Per the 2026 FDD, average gross sales were $2.8M (Item 19 group “All Home Instead U.S. Franchised Businesses (2025)”, 611 outlets; gross sales, not profit). SBA 7(a) loans show a 2.7% charge-off rate on 186 resolved loans. Verdict grade: A (Strongest tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Senior Care median
Top edge: green = better than the Senior Care median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $2.8M/year (outlet median $2.4M; Item 19 group “All Home Instead U.S. Franchised Businesses (2025)”, 611 outlets; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 7 (17 opened, 10 left the franchised system, 2 of them bought back by the franchisor).
AT STAKEOne unit at the Item 7 midpoint: $29K a year in payments on assumed SBA 7(a)-style terms.You put in about $44K of your own cash and personally guarantee a $177K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (5)
- 2 pending matters name the franchisor in Item 3 (litigation). Pending claims are allegations, not findings; for a system this size the score counts the legal record in the brand's favour. Read the matter in Item 3.
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- You waive a jury trial in disputes with the franchisor (Item 17, renewal, termination and disputes).
- The franchisor receives rebates or payments from suppliers you buy from (Item 8, required suppliers).
- Item 15 (owner participation) requires the owner, or a principal the franchisor approves, to run the business day to day. Ask how much of the business that principal must own.
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, SBA charge-off rate 2.7%, below the 8.8% category median and the full filing on file, and an Item 19 average from 611 units.
What to do next
Step 1: Read the FDD itself.
Free: read the 2026 filing on this site, page by page. The franchisor must also give you its current FDD at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Shortcut: the Home Instead owner list as a CSV, in the Contacts section.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 61% above the Senior Care median ($137K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Home Instead, Inc. (Item 1: 13323 California Street, Omaha, Nebraska 68154) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $54K | $54K | |
| Operating software, Required Systems, and Technology Fee – 3 months | $2.3K | $2.4K | |
| Training and Living Expenses while Training | $2.6K | $8.25K | |
| Real Estate & Improvements | $600 | $15.5K | |
| Equipment | $3K | $21.5K | |
| Signs | $0 | $15.5K | |
| Miscellaneous Opening Costs, including insurance deposit | $1.3K | $25.4K | |
| Inventory | $0 | $8K | |
| Advertising – 3 Months | $0 | $13K | |
| Additional Funds – 3 Months, and | $28.8K | $187K | |
| Total initial investment | $93K | $351K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology feeMonthly Technology Fee, currently $500/month, adjustable up to 25% per calendar year with 60 days' notice | $500/month |
| Transfer fee | $25,000 |
| Renewal fee | $9,000 |
| Total fee loadnear the Senior Care median of 7.0% | 7.0% of sales |
What do units actually make?
Average gross sales are 2.6× the Senior Care median ($1.1M).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Home Instead unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $2.8M (FDD Item 19, p.65), and the royalty and ad fund take about $193K of that a year (Item 6). This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $29K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $222K Item 7 midpoint is a $177K loan, paid over 10 years at 10.5%: $29K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Home Instead's past SBA 7(a) loans averaged 5.9% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $44K Assumption (the part the loan does not cover of the $222K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $177K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Home Instead unit leave you each year after the loan payment?
Item 19: $2,750,875 average for 611 outlets (All Home Instead U.S. Franchised Businesses, 2025). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $93K to $351K
Item 7's $29K to $187K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $177K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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 · filed by Home Instead, Inc.
Financial performance
- Range (low → high)
- $38K→$13.1M2026 FDD Item 19, p.65
- Cohort dispersion (min → max)
- Transparency
- 4 / 10
- vs category median 4 / 10 (typical)
Percentile ranks within Senior Care
Each rank is among the Senior Care brands that report that figure (the count is under each bar).
Average gross sales are 12.4x the investment midpoint. Gross sales are not profit: payback depends on margins the FDD does not disclose.
vs Senior Care medians
How Home Instead compares
Category median of published Senior Care brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
Home Instead, Inc., owned by Honor Technology, Inc.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Home Instead, Inc.
- Parent company
- Honor Technology, Inc.
- FDD Item 1, page 9 of the 2026 FDD
- CEO title
- Chief Executive Officer and Director
- Seth Sternberg
- Incorporated in
- Nebraska
- HQ
- 13323 California Street, Omaha, Nebraska 68154
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $170.0M
- latest fiscal year in the 2026 FDD; $157.5M the year before
Overview
About
- CEO
- Seth Sternberg
- Franchised outlets in
- 50 states and territories
- Item 20 Table 3, at year end
- States and territories listed
- 50
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
+10 franchised outlets over the two years to 2025 (616 to 626, +1.6% in total, +0.8% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 8
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 2
- Franchisor bought back
- Signed, not yet open
- 0
- Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
- Termination rate
- 0.2%
- Franchisor-initiated terminations
Item 20 · franchised units at year end
Franchised units rose from 616 in 2023 to 626 in 2025
Axis does not start at zero.
Source and method
Item 20 (outlet counts) Table 3 · franchised outlets at year end
Where current outlets are
Franchised outlets at year end by state, as the filing's Item 20 Table 3 counts them. Not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 50 statesNo current outlet
626 franchised outlets at year end in 50 states (Item 20 Table 3).
Government records
SBA loan data
Lenders charged off 2.7% of 186 resolved SBA 7(a) loans, below the 8.8% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 194
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $89.9M
- Average loan
- $464K
- loan volume divided by loans
- Charge-off rate
- 2.7%
- 5 of 186 resolved loans
- Paid in full
- 97.3%
- of resolved loans
- Charge-off, loans approved FY2014–FY2018
- 1.8%
- 2 of 111 resolved loans; newer loans have not had time to default, so this is not a trend
- Lenders
- 59
- Average interest rate
- 5.9%
- Jobs reported
- 13,418
- Lender concentration
- 31%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Benchmark: the median Senior Care brand charges off 8.8% (18 brands with a published rate, same cumulative window and source). This brand is 6.2 points below it.
The approval-year breakdown covers 182 of the 186 resolved loans and 5 of the 5 charge-offs (FY2003 to FY2018).
SBA 7(a) · charge-off rate by approval year
Home Instead: below all franchise loans in each of the 5 rated years
Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (too few to judge). Their numbers are in the table.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2003 | 9 | 1 | Too few |
| 2005 | 4 | 0 | Too few |
| 2006 | 6 | 1 | Too few |
| 2007 | 5 | 0 | Too few |
| 2008 | 7 | 0 | Too few |
| 2009 | 7 | 0 | Too few |
| 2010 | 9 | 1 | Too few |
| 2011 | 4 | 0 | Too few |
| 2012 | 4 | 0 | Too few |
| 2013 | 16 | 0 | 0.0% |
| 2014 | 29 | 0 | 0.0% |
| 2015 | 19 | 1 | 5.3% |
| 2016 | 33 | 0 | 0.0% |
| 2017 | 22 | 1 | 4.5% |
| 2018 | 8 | 0 | Too few |
Dashed line: all franchise 7(a) loans approved the same year.
Source and method
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Home Instead from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 68%
- Average interest rate
- 5.9%
- Lender concentration
- 31%
- Jobs reported
- 13,418
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| American National Bank | ||
| 60 | $34.5M | 1.7%58 resolved |
| Wells Fargo Bank National Association | ||
| 17 | $6.6M | 0.0%15 resolved |
| PNC Bank, National Association | ||
| 10 | $1.5M | 0.0%10 resolved |
| Stearns Bank National Association | ||
| 8 | $4.6M | Too few8 resolved |
| First National Bank of Pennsylvania | ||
| 6 | $9.5M | Too few6 resolved |
| Bank of America, National Association | ||
| 5 | $108K | Too few5 resolved |
| KeyBank National Association | ||
| 5 | $685K | Too few5 resolved |
| The Huntington National Bank | ||
| 5 | $1.6M | Too few5 resolved |
| Readycap Lending, LLC | ||
| 4 | $2.3M | Too few4 resolved |
| Truist Bank | ||
| 4 | $1.2M | Too few4 resolved |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| CA California | 28 | 1 | 3.6%28 resolved |
| TX Texas | 15 | 0 | 0.0%14 resolved |
| PA Pennsylvania | 14 | 0 | 0.0%14 resolved |
| MA Massachusetts | 12 | 0 | 0.0%10 resolved |
| OH Ohio | 12 | 0 | 0.0%12 resolved |
| AZ Arizona | 10 | 1 | 10.0%10 resolved |
| FL Florida | 10 | 0 | 0.0%10 resolved |
| NC North Carolina | 7 | 1 | Too few7 resolved |
| CO Colorado | 6 | 1 | Too few6 resolved |
| MN Minnesota | 5 | 0 | Too few5 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Industry context
Most of this brand’s borrowers recorded NAICS 621610 (Home Health Care Services) on their loans. Across every SBA 7(a) loan in that industry code, all approval years, franchised businesses charged off 7.5% (803 resolved loans) and independent businesses 11.5% (4,277 resolved loans). Franchising does not lower the rate in every industry.
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
SBA loans charge off at 2.7% on 186 resolved loans, below the Senior Care median of 8.8% (18 brands).
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade A: Strongest tier, 91/100 (category median 58); the full grade is at the top of the page.
How the grade is built
Home Instead's main risks are stagnant growth, undisclosed profitability data, ongoing litigation history, and unverified revenue claims that require substantial validation before investment.
Why an A, factor by factor
- Financial health HelpsAudited financials; no going-concern doubt; statements are the parent's, so this stays near neutral
- Unit economics HelpsAvg gross sales $2.8M on a $222K investment midpoint, 12.4x (gross sales, not profit)
- Unit growth Neutral+10 franchised outlets over the two years to 2025 (616 to 626, +1.6% in total, +0.8% a year compounded); turnover 1.6%
- Scale Helps626 franchised units, +8 company-owned (634 in all); franchising since 1995
- Legal Helps6 matters naming the franchisor among the Item 3 matters we list (0.9 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (+5 points)SBA loan record: the SBA charge-off rate (2.7% on 186 resolved loans) is between 2% and 5%, a range the score counts in a brand's favour, so it added 5 points.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Three pending franchisee groups (WJM/Nebraska, Managed Care/California, REM/Michigan) allege breach of a March 2024 settlement agreement re: early renewal rights (Nebraska case dismissed with prejudice); L4 Enterprises franchisee suit alleging misrepresentation and lack of support; Home Instead-initiated suit against Bidwell Home Care to enforce non-compete (resolved via injunction); concluded suits against Head 2 Head and Elderly Care Services for Lanham Act/trade secret violations (settled 2024); concluded Elder Care Providers of Indiana suit resulting in $500,000 judgment for Home Instead (settled 2018).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
The revenue figures are in the Franchisor tab, under The franchisor.
Franchisor entity revenue (not unit-level)
Total revenues of $157,471,302 (FY2024, consolidated) comprise franchisor revenue $122,206,142, marketing fund revenue $33,715,023, and company-owned franchisee revenue $1,550,137. Audited consolidated financials of Home Instead, Inc. and Subsidiaries; parent Honor Technology, Inc. Auditor report dated April 30, 2025; CPA firm name not present as extractable text.
ⓘ 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
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Franchisor takes supplier rebates: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Notes from the filing review · not the score inputs
- 01HIGHMultiple litigation cases involving breach of non-compete and wrongful termination indicate franchisor-franchisee relationship strain
- 02MEDService-based model dependent on labor costs and local hiring, with no disclosed labor economics or staffing efficiency metrics
- 03MINORFranchisor winning wrongful termination counterclaims suggests potential aggressive contract enforcement or termination practices
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail6 matters · Item 3
Litigation cases
The franchisor
Pending (2)
L4 Enterprises, Inc. v. Home Instead, Inc.
pendingBrought by a franchisee · filed 2025-12-24 · Superior Court of the State of California, County of Kern · 25CUB01090
“… (Superior Court of the State of California, County of Kern, Case No. 25CUB01090).”Page 16 of the 2026 FDD, Item 3
WJM Home Care, LLC, et al. v. Home Instead, Inc.; Managed Care, Inc., et al. v. Home Instead, Inc.; REM Senior Services Corp., et al. v. Home Instead, Inc.
pendingBrought by a franchisee · filed 2025 · U.S. District Courts for the District of Nebraska, the Central District of California and the Eastern District of Michigan · 8:25-cv-00654; 5:25-cv-03149; 2:25-cv-13746
“WJM Home Care, LLC, et al. v. Home Instead, Inc. (U.S. District Court for the District of Nebraska, Case No. 8:25-cv-00654) (“Nebraska Lawsuit”);”Page 16 of the 2026 FDD, Item 3
Outcome: “The California and Michigan Lawsuits involve substantially similar allegations and remain pending. Home Instead’s Motion to Dismiss in the remaining pending actions contends that the Settlement Agreement does not provide the early renewal rights alleged by plaintiffs and that it has not breached the agreement.”
Concluded (4)
Home Instead, Inc. v. Bidwell Home Care Service, LLC, et al.
concludedBrought against a franchisee · filed 2025 · U.S. District Court for the Middle District of Florida · 25-00754
“… (U.S. District Court for the Middle District of Florida, Case No. 25-00754).”Page 17 of the 2026 FDD, Item 3
Outcome: “The Court entered the stipulated permanent injunction against a former franchisee on December 23, 2025. The litigation has been resolved and is no longer pending.”
Home Instead, Inc. v. Elderly Care Services, LLC et al.
settledBrought against a franchisee · filed 2023-09-29 · U.S. District Court of Nebraska · 8:23cv00431
“… (U.S. District Court of Nebraska, Case No. 8:23cv00431. On September 29, 2023, we asserted claims against franchisee, Elderly Care Services, LLC (“Elderly Care”), and its guarantors for violation of the”Page 17 of the 2026 FDD, Item 3
Outcome: “Elderly Care ceased to be a Home Instead franchisee; a stipulated judgment was entered in our favor on all of our claims and will include an award of monetary damages; a stipulated order of permanent injunction was entered against Elderly Care enforcing certain post-term covenants as stated in the” (page 18)
Home Instead, Inc. v. Head 2 Head, Inc. et al.
settledBrought against a franchisee · filed 2023-09-27 · U.S. District Court of Nebraska (related action: U.S. District Court for the Western District of Virginia, Case No. 6:23CV00067) · 8:23cv00424
“… (U.S. District Court of Nebraska, Case No. 8:23cv00424). On September 27, 2023, we asserted claims against franchisee, Head 2 Head, Inc. (“Head”), and its guarantors for violation of the Lanham Act and”Page 17 of the 2026 FDD, Item 3
Outcome: “Head ceased to be a Home Instead franchisee; a stipulated judgment was entered in our favor on all of our claims and included an award of monetary damages; a stipulated order of permanent injunction will be entered against Head enforcing certain post-term covenants as stated in the order, including”
Elder Care Providers of Indiana, Inc. v. Home Instead, Inc.
settledBrought by a franchisee · filed 2014-11-18 · United States District Court for the Southern District of Indiana · 1:14cv01894
“… Case No. 1:14cv01894, was filed in the United States District Court for the Southern District of Indiana on November 18, 2014.”Page 18 of the 2026 FDD, Item 3
Outcome: “On March 30, 2018, the parties entered into a settlement agreement, including a stipulated judgment and order, under which: (1) judgment was entered in favor of Home Instead, Inc. on”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Protected territory | Yes |
|---|---|
| Exclusive territory | No |
| Territory population | 10,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | The owner, or a principal the franchisor approves, must run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 45 mi |
| Right of first refusal | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination grounds | 3 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | NE |
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 28 hrs
- On-the-job training
- 16 hrs
- Training location
- Omaha, NE (or another designated location, or virtually)
- Ongoing training
- Required
- Time to open
- 1 mo
- From signing to launch
- Site selection
- Franchisee with franchisor input
- Franchisor financing
- Not offered
- Item 10
- POS system
- WellSky or Care Platform
- Operating tech stack
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
183 current outlets listed
Records carry a phone number, city and state (city on 208 of 209). 196 of 209 also name the franchisee. 209 records: 183 current outlets + 26 former owners (terminated, transferred, not renewed or otherwise left). From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 183 of the 626 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
One-time · CSV download · full refund within 7 days if the data does not match the FDD. Some numbers, especially for former owners, may be outdated.
Frequently asked questions
How much does it cost to open a Home Instead franchise?
Per the 2026 FDD, the total investment to open a Home Instead franchise ranges from $93K to $351K, with an initial franchise fee of $54K – $56K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Home Instead franchise owners earn?
According to Item 19 of the Home Instead FDD, average gross sales were $2.8M (Item 19 group “All Home Instead U.S. Franchised Businesses (2025)”, 611 outlets; gross sales, not profit). The median is $2.4M. What an owner keeps depends on location, operating costs and management.
Who owns Home Instead?
Home Instead is franchised by Home Instead, Inc. Its parent company is Honor Technology, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Home Instead 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 Home Instead FDD and qualifies whose outlets they describe.
What is Home Instead's franchise failure rate?
There is no published franchise failure rate. What is measurable is Home Instead's SBA charge-off rate: 2.7% on 186 resolved loans. Put plainly: 1 in 37 SBA 7(a) loans to Home Instead owners charged off (5 of 186 resolved loans, approved since FY1991); loans approved FY2014–FY2018: 2 of 111 resolved loans charged off (1.8%); newer loans have not had time to default, so this is not a trend. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Home Instead franchise locations are there?
Per the 2026 FDD, Home Instead has 626 franchised units and 8 company-owned (634 in all). In the latest year, the number of franchised outlets grew by 7 (17 opened, 10 left the franchised system, 2 of them bought back by the franchisor).
Is Home Instead a good franchise to buy?
FranchiseVerdict gives Home Instead an A Verdict grade (Strongest tier) with a verdict score of 91 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by financial health (audited financials), unit economics, scale, legal record and transparency. The “Why an A” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
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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.