Homewatch CareGivers
Bottom line
- Total investment $92K – $154K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.2M/year (median $722K).
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 112 loans (below the industry average).
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 Homewatch CareGivers unit return on the cash you put in?
Unlevered ROIC · per unit
174%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Homewatch CareGivers units return on equity?
Equity IRR · 5-yr
29.7%
3.67× MOIC
Year-1 DSCR
2.72×
EBITDA ÷ debt service
Equity required
$8.8M
on $19.8M purchase
Total debt
$10.9M
SBA $5.0M + senior + seller note
Overview
About
Homewatch CareGivers operates a non-medical home care services franchise providing elderly and disabled clients with in-home assistance including companionship, personal care, mobility support, and daily living tasks. Franchisees manage hiring and scheduling of care aides, client acquisition, billing/payroll, and regulatory compliance within their protected territory. Daily operations involve direct client interaction, caregiver supervision, care plan management, and quality assurance.
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 · 28 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining unit count, undisclosed profitability, litigation history, and high investment costs create a CAUTION-level risk profile requiring deep franchisee validation before commitment.
Score breakdown · what drove the 46 / 100 rating
- 01MEDUnit decline of 4.1% YoY indicates shrinking franchise system despite $1.2M+ average revenue
- 02MEDNet income not disclosed in Item 19 prevents ROI validation; only gross revenue available
- 03HIGHLitigation history shows aggressive enforcement against franchisees, including trade secret claims and non-compete actions
- 04MEDHigh initial investment ($92K-$154K) relative to disclosed profitability metrics creates elevated financial risk
- 05HIGHGoing Concern flag is FALSE but declining unit count (-9 units) suggests potential underlying business model stress
- 06MED5% minimum royalty structure with no disclosed floor may create cash flow pressure during market downturns
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
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Homewatch CareGivers · FDD (2024) PDF