Homewatch CareGivers Franchise Cost, Revenue & Review 2026
- Investment
- $143K – $194K
- Disclosed sales
- $1.4M
- gross sales, not profit
- SBA charge-off
- 25.0%
- on 70 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Homewatch CareGivers is an in-home care franchise providing companionship, personal care, and skilled nursing to seniors and other clients. Franchisees run an agency recruiting caregivers and nurses, scheduling visits, and managing client care.
FranchiseVerdict summary · 2026
A Homewatch CareGivers franchise requires a total initial investment of $143K – $194K, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.4M[2]. SBA 7(a) loans show a 25.0% charge-off rate across 70 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
Evidence: 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
- Investment
- $143K – $194K
- 82nd pct Senior Care
- Avg gross sales
- $1.4M
- 28th pct Senior Care
- Royalty
- 5.0%
- 5th pct Senior Care
- Units
- 260
- 87th pct Senior Care
- SBA charge-off
- 25.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Senior Care · color = vs category peers
Green = favorable by >10% vs Senior Care median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $143K – $194K including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.4M/year (median $666K).
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 25.0% across 70 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +29 franchised outlets in the latest year (42 opened, 13 closed); 24 signed but not yet open (Item 20).
- GROWTHSystem growing at 22.1% CAGR over 3 years with 260 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Homewatch CareGivers Franchising SPE LLC
- Parent company
- AB Assetco LLC
- FDD Item 1, page 6 of the 2026 FDD
- Ultimate parent
- Authority Brands, Inc.
- FDD Item 1, page 6 of the 2026 FDD
- Predecessor
- Homewatch CareGivers, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer of AB Inc.
- Jason (Jay) Caiafa
- Incorporated in
- Delaware
- HQ
- 7120 Samuel Morse Drive, Suite 300, Columbia, MD 21046
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $219.1M
- vs $190.8M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Same owner · FDD Item 1, page 6
14 other brands on this site name Authority Brands, Inc. as parent or ultimate parent in their own FDD.
- ASP - AMERICA’S SWIMMING POOL COMPANYC
- Benjamin Franklin PlumbingA
- COLOR WORLD PAINTINGD
- DRYMEDICA
- DoodyCallsA
- LAWN SQUADB
- MISTER SPARKYA
- MONSTER TREE SERVICEB
- Mosquito SquadA
- ONE HOUR HEATING & AIR CONDITIONINGA
- SCREENMOBILEA
- THE JUNKLUGGERSC
- The Cleaning AuthorityB
- WOOFIE’SB
Portfolio: Authority Brands
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Jason (Jay) Caiafa
- Headquarters
- Maryland
- Founded
- 1996
- FDD year
- 2026
- States available
- 31
Can you afford it, and what does the money buy?
Entry cost runs 23% above the typical senior care franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $70K | $90K |
| Equipment, build-out, other | $23K | $54K |
| Total initial investment | $143K | $194K |
Source: Homewatch CareGivers 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $143K – $194K
- Bottom third — review vs category
- Liquid capital req'd
- $70K – $90K
- Bottom third — review vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 5.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% |
| Technology fee | $225 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 28% above the senior care norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Homewatch CareGivers until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$248K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Homewatch CareGivers unit return on the cash you put in?
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.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
Financial Performance
- Avg gross sales
- $1.4M
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
- Median gross sales
- $666K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales by years in business cohort
- Sample size
- 214 territories
- vs category median 22 · large
- Range (low → high)
- $26K→$33.4MCited, not corroborated — printed on page 75 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2023
- Transparency
- 5 / 10
- vs category median 4 / 10 · above
Compared against 79 Senior Care brands
Revenue is 8.1x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.4M/year in gross sales. Median is $666K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 8.1x.
Fee burden
Total ongoing fee load of 7.0% (near the Senior Care median).
Disclosure
Transparency score 5/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 22.1% CAGR over 3 years across 260 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Senior Care medians
How Homewatch CareGivers 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.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 260
- Opened
- 42
- Last reporting year
- Closed
- 13
- Terminated
- 10
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +22.1%
- Net unit change over 3 years
- 3-yr CAGR
- +22.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 10
- Not renewed
- 1
- Transferred
- 7
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 24
- 0.09 per open outlet · Item 20 Table 5
- Projected new
- 28
- Franchisor's next-year forecast
- Transfer rate
- 0.1%
- Owners selling to other franchisees
- Termination rate
- 0.4%
- Franchisor-initiated terminations
- Ceased ops
- 0.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 32 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.
Available to sell in · Item 12
- Illinois
- New York
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
145 current owners across 32 states.
- TX 19
- CA 18
- FL 14
- PA 11
- NJ 8
- IL 6
- MD 6
- AZ 5
- GA 5
- NC 5
- CO 4
- CT 4
- +20 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 70
- Loan volume
- $18.9M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 25.0%
- on 70 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 75.0%
- 5-yr charge-off
- 50.0%
- Loans approved 2021+
- Active lenders
- 33
- Defaults
- 8
- Typical loan rate
- 8.3%
- avg rate to borrowers
- Franchised industry avg
- 7.5%
- brand above franchise avg ↑
- Jobs supported
- 1,864
- 9.9 per loan
- Lender concentration
- 24%
- top lender's share
Borrower mix: 78% went to startups / new businesses, 22% to established operators
Franchise vs independent — in home health care services, franchised businesses charge off at 7.5% vs 11.5% for independents — franchising is associated with 35% lower SBA default risk in this category.
Vintage analysis
Homewatch CareGivers charge-off rate by loan vintage
Top lenders financing Homewatch CareGivers franchisees
Showing 3 of 33 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Homewatch CareGivers from SBA 7(a) FOIA data.
- Principal loss rate
- 4.1%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 8.35%
- Avg chargeoff amount
- $97K
- Lender concentration
- 24.3%
- Job velocity
- 9.9 per $100K
- NAICS benchmark
- 5.7%
- NAICS 621610
- Jobs supported
- 1,864
Top SBA lendersTop lender holds 24% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 17 | $2.5M | 57.1% |
| 2 | The Huntington National Bank | 9 | $1.4M | 0.0% |
| 3 | Bank of Hope | 3 | $447K | 0.0% |
| 4 | Citizens Bank, National Association | 3 | $85K | 0.0% |
| 5 | American National Bank | 3 | $1.6M | N/A |
| 6 | First Bank of the Lake | 3 | $470K | N/A |
| 7 | Fulton Bank, National Association | 2 | $100K | 0.0% |
| 8 | Stearns Bank National Association | 2 | $247K | 0.0% |
| 9 | U.S. Bank, National Association | 2 | $80K | 0.0% |
| 10 | Readycap Lending, LLC | 2 | $184K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 13 | 2 | 40.0% |
| TXTexas | 8 | 0 | 0.0% |
| MNMinnesota | 7 | 0 | 0.0% |
| MIMichigan | 6 | 0 | 0.0% |
| FLFlorida | 5 | 1 | 50.0% |
| NJNew Jersey | 3 | 0 | 0.0% |
| AZArizona | 2 | 1 | 50.0% |
| COColorado | 2 | 0 | 0.0% |
| ILIllinois | 2 | 0 | -- |
| INIndiana | 2 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 25.0% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 25.0% — 56% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
One concluded action: Homewatch International, Inc. v. The Carswell Group, Inc. (2016), in which HWCG sued former franchisees for breach of contract, unjust enrichment, and misappropriation of trade secrets after post-termination non-compete violations; franchisor prevailed, obtaining injunction, monetary damages, and attorney's fees; defendants' counterclaims were dismissed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Financial statements are the audited consolidated statements of AB Assetco LLC (parent/guarantor), not the franchisor (HWCG-SPE) itself; the franchisor's separate statements are not included and AB Assetco guarantees the franchisor's performance. Amounts originally reported in thousands. 2023 total revenues of $219,067K comprise franchise service fees $172,290K, franchise sales fees $12,947K, and other revenues $33,830K.
ⓘ 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
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 verdict
- 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
- 04MED5% 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
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 40,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 40 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Columbia, Maryland |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 1 |
View Item 3 litigation summary
One concluded action: Homewatch International, Inc. v. The Carswell Group, Inc. (2016), in which HWCG sued former franchisees for breach of contract, unjust enrichment, and misappropriation of trade secrets after post-termination non-compete violations; franchisor prevailed, obtaining injunction, monetary damages, and attorney's fees; defendants' counterclaims were dismissed.
Items 10, 11
Training & Operations
- Classroom training
- 200 hrs
- On-the-job training
- 0 hrs
- Training location
- Franchisee's location (Pre-Training, online/self-directed) and Atlanta, GA (Classroom Training)
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Homewatch CareGivers Care+ (practice management system)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Homewatch CareGivers Care+ (practice management system)
Item 20 · call current owners
Franchisee Contacts
145 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Homewatch CareGivers franchise?
The total investment to open a Homewatch CareGivers franchise ranges from $143K – $194K, 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 Homewatch CareGivers franchise owners earn?
According to Item 19 of the Homewatch CareGivers FDD, the average gross sales per unit is $1.4M. The median is $666K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Homewatch CareGivers?
Homewatch CareGivers is franchised by Homewatch CareGivers Franchising SPE LLC. Its parent company is AB Assetco LLC. The ultimate parent named in the FDD is Authority Brands, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Homewatch CareGivers 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 Homewatch CareGivers FDD and qualifies whose outlets they describe.
What is Homewatch CareGivers's franchise failure rate?
Based on SBA 7(a) loan data, Homewatch CareGivers has a charge-off rate of 25.0% across 70 loans, meaning 25.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Homewatch CareGivers franchise locations are there?
As of their most recent FDD filing, Homewatch CareGivers has 260 total units in the United States, including 260 franchised units and 0 company-owned units. 42 new units were opened in the latest reporting year.
Is Homewatch CareGivers a good franchise to buy?
FranchiseVerdict rates Homewatch CareGivers as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.