SarahCare Franchise Cost, Revenue & Review 2026
- Investment
- $351K – $921K
- Disclosed sales
- $712K
- gross sales, not profit
- SBA charge-off
- 33.3%
- on 17 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
SarahCare is a senior care franchise operating adult day care centers offering supervision, activities, and health support for seniors. Franchisees run the centers, managing staff, programming, and client care.
FranchiseVerdict summary · 2026
A SarahCare franchise requires a total initial investment of $351K – $921K, including a $39K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $712K[2]. SBA 7(a) loans show a 33.3% charge-off rate across 17 loans[1]. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
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 scored5 of 6 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $351K – $921K
- 59th pct Education
- Avg gross sales
- $712K
- Outlet subset23rd pct Education
- Royalty
- 5.0%
- 3rd pct Education
- Units
- 21
- 42nd pct Education
- SBA charge-off
- 33.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education 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 $351K – $921K including a $39K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $712K/year (reported for a subset of outlets rather than the whole system).
- RISKVerdict F (Weakest tier), verdict score 20/100 (higher is better). SBA loan charge-off rate of 33.3% across 17 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 1 closed) (Item 20).
- DECLINESystem contracting at -16.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- SARAH Adult Day Services, Inc.
- Parent company
- Innovative MedTech, Inc. (IMTH) was prior parent until November 2025 stock repurchase by founder; SARAH currently has no parent company
- Ultimate parent
- None (founder Merle Griff repurchased all shares from Innovative MedTech, Inc. in November 2025)
- CEO title
- Founder, President and Chief Executive Officer
- Merle D. Griff, Ph.D.
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Ohio
- HQ
- 4942 Higbee Avenue NW, Suite H, Canton, Ohio 44718
- Auditor
- Stinnett, Padrutt & Aranyosi Co.
- Audited financials
- Franchisor revenue
- $699K
- vs $727K prior year
Same owner · FDD Item 1
12 other brands on this site name None (founder Merle Griff repurchased all shares from Innovative MedTech, Inc. in November 2025) as parent or ultimate parent in their own FDD.
- 9ROUNDC
- ADVANTAGE COLLEGE PLANNINGB
- AMRAMPA
- AlignLifeC
- Body Alive StudioC
- Ivybrook AcademyA
- JAN-PRO Commercial CleaningA
- ONEZOC
- Once Upon A ChildA
- Original Rainbow ConeC
- Pizza SchmizzaB
- True RESTC
Grouped by the owner's name as each filing prints it (this page: the 2025 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
- Merle D. Griff, Ph.D.
- Headquarters
- OH
- Founded
- 1998
- FDD year
- 2025
- States available
- 12
Can you afford it, and what does the money buy?
Entry cost runs 227% above the typical education franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $39K | $39K | |
| Turnkey Agreement Feenot refundable | $0 | $70K | |
| Initial Training Expensesnot refundable | $3K | $5K | |
| Rent - 3 monthsnot refundable | $30K | $39K | |
| Tenant Improvementsnot refundable | $50K | $350K | |
| Furnishings, Equipment, and Signagenot refundable | $109K | $120K | |
| Start-up Inventory & Suppliesnot refundable | $20K | $30K | |
| Insurancenot refundable | $10K | $27K | |
| Transportation Servicenot refundable | $0 | $15K | |
| Professional Feesnot refundable | $5K | $30K | |
| Deposits | $5K | $12K | |
| Marketing Deposit - 3 monthsnot refundable | $20K | $20K | |
| Software start-up, training, and fees (3 months)not refundable | $10K | $10K | |
| Additional Funds - 3 Monthsnot refundable | $50K | $156K | |
| Total initial investment | $351K | $923K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $351K – $921K
- Middle of category vs category
- Liquid capital req'd
- $50K – $156K
- Middle of category vs category
- Franchise fee
- $39K – $39K
- Top 40% of category vs category
- Royalty
- 5.0%
- Set by a formula · typical 6–8%
- Ad fund
- No mandatory ad fund contribution; recommended local adve…
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Technology fee | $5K |
| Training fee | $200 |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Inventory (initial) | $20K – $30K |
| Total fee load | 5.0% of rev |
A 5.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 75% above the education norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · 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 SarahCare 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 ad fund rate, 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
$739K
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 SarahCare 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 ad fund rate, 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 ad fund rate, 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: 2025 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $712K
- Per unit, per year
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
- Sample size
- 19 outlets
- vs category median 16
- Range (low → high)
- $35K→$3.0MCited, not corroborated — printed on page 34 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
Compared against 204 Education brands
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 $712K/year in gross sales. Revenue-to-investment ratio: 1.1x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 5.0% — below the Education median of 9.0%.
Disclosure
Transparency score 0/10 — minimal disclosure beyond the required average. Hard to judge the distribution of outcomes across units.
Operator retention
System contracting at -16.7% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Education medians
How SarahCare Compares
Category median of published Education 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 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 21
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (3-yr)
- -16.7%
- Net unit change over 3 years
- 3-yr CAGR
- -16.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 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.
Where the owners are · Item 20 owner list
20 current owners across 11 states.
- MA 4
- PA 4
- FL 2
- MI 2
- TX 2
- CA 1
- CT 1
- GA 1
- IN 1
- NJ 1
- OH 1
Counts only, from the list the franchisor prints in Item 20; 2 entries carry no state. 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
- 17
- Loan volume
- $7.3M
- Median loan
- $301K
- 50th percentile
- Charge-off rate
- 33.3%
- on 17 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)
- 66.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 10
- Defaults
- 4
- Typical loan rate
- 7.9%
- avg rate to borrowers
- Franchised industry avg
- 14.0%
- brand above franchise avg ↑
- Jobs supported
- 164
- 3.3 per loan
- Lender concentration
- 25%
- top lender's share
Borrower mix: 67% went to startups / new businesses, 33% to established operators
Franchise vs independent — in services for the elderly and persons with disabi, franchised businesses charge off at 14.0% vs 12.2% for independents — franchising is associated with 15% higher SBA default risk in this category.
Top lenders financing SarahCare franchisees
Showing 3 of 10 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 SarahCare from SBA 7(a) FOIA data.
- Principal loss rate
- 10.2%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 7.94%
- Avg chargeoff amount
- $252K
- Lender concentration
- 25.0%
- Job velocity
- 3.3 per $100K
- NAICS benchmark
- 27.4%
- NAICS 624120
- Jobs supported
- 164
Top SBA lendersTop lender holds 25% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | First Western SBLC, Inc | 3 | $824K | 0.0% |
| 2 | Fulton Bank, National Association | 2 | $920K | 0.0% |
| 3 | First Bank of the Lake | 2 | $1.3M | N/A |
| 4 | The Huntington National Bank | 2 | $897K | N/A |
| 5 | Bank OZK | 1 | $300K | 100.0% |
| 6 | Queensborough National Bank and Trust Company | 1 | $335K | 0.0% |
| 7 | Robins Financial CU | 1 | $302K | 100.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| FLFlorida | 2 | 1 | 50.0% |
| GAGeorgia | 2 | 1 | 50.0% |
| MAMassachusetts | 2 | 0 | -- |
| MIMichigan | 2 | 0 | 0.0% |
| NJNew Jersey | 2 | 0 | 0.0% |
| TXTexas | 2 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 33.3% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 33.3% — 108% 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
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
Sarah Adult Day Services, Inc. filed three actions: (1) vs. Boston Adult Daycare Corp., Worcester Adult Daycare, LLC, and owners Alla Shlosman and Janet Goronshtein (Case No. 5:19-cv-672) for failure to pay royalties and breach - settled November 15, 2019 with partial payments, secured notes, and new 10-year franchise agreements; (2) vs. Beyda Adult Day Care, LLC et al. (Case No. 5:19-CV614) seeking confirmation of arbitration award regarding non-competition violation - court confirmed award October 2, 2019, settled with new 10-year franchise agreement effective April 28, 2020; (3) Arbitration demand vs. Beyda Adult Day Care, LLC et al. (Case No. 01-18-00016101) filed April 23, 2018 - arbitrator issued final award February 28, 2019 enjoining competing business operation after franchise expiration.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Stinnett, Padrutt & Aranyosi Co.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 20 / 100 verdict
- 01MINORNegative net worth -$445,340, net loss -$2,890,543
- 02HIGH3 litigation matters (royalty disputes)
- 03MINORNet growth -16.7% (contracting)
- 04MINORFinancial distress flagged
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 12,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 6 |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Canton, Ohio |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 3 |
View Item 3 litigation summary
Sarah Adult Day Services, Inc. filed three actions: (1) vs. Boston Adult Daycare Corp., Worcester Adult Daycare, LLC, and owners Alla Shlosman and Janet Goronshtein (Case No. 5:19-cv-672) for failure to pay royalties and breach - settled November 15, 2019 with partial payments, secured notes, and new 10-year franchise agreements; (2) vs. Beyda Adult Day Care, LLC et al. (Case No. 5:19-CV614) seeking confirmation of arbitration award regarding non-competition violation - court confirmed award October 2, 2019, settled with new 10-year franchise agreement effective April 28, 2020; (3) Arbitration demand vs. Beyda Adult Day Care, LLC et al. (Case No. 01-18-00016101) filed April 23, 2018 - arbitrator issued final award February 28, 2019 enjoining competing business operation after franchise expiration.
Items 10, 11
Training & Operations
- Classroom training
- 56 hrs
- On-the-job training
- 7 hrs
- Training location
- SARAH headquarters (Canton, Ohio) or designated location
- Ongoing training
- Required
- Field support
- 7 hrs/yr
- On-site visits per year
- Site selection
- franchisee (with franchisor approval and site selection criteria/guidance); optional Turnkey Agreement allows franchisor to complete all site tasks
- Franchisor financing
- Not offered
- Item 10
- POS system
- Storii Care
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Storii Care
Item 20 · call current owners
Franchisee Contacts
22 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 SarahCare franchise?
The total investment to open a SarahCare franchise ranges from $351K – $921K, with an initial franchise fee of $39K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do SarahCare franchise owners earn?
According to Item 19 of the SarahCare FDD, the average gross sales per unit is $712K. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns SarahCare?
SarahCare is franchised by SARAH Adult Day Services, Inc.. Its parent company is Innovative MedTech, Inc. (IMTH) was prior parent until November 2025 stock repurchase by founder; SARAH currently has no parent company. The ultimate parent named in the FDD is None (founder Merle Griff repurchased all shares from Innovative MedTech, Inc. in November 2025). Source: FDD Item 1, 2025 filing.
What is Item 19 in the SarahCare 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 SarahCare FDD and qualifies whose outlets they describe.
What is SarahCare's franchise failure rate?
Based on SBA 7(a) loan data, SarahCare has a charge-off rate of 33.3% across 17 loans, meaning 33.3% 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 SarahCare franchise locations are there?
As of their most recent FDD filing, SarahCare has 21 total units in the United States, including 20 franchised units and 1 company-owned units.
Is SarahCare a good franchise to buy?
FranchiseVerdict rates SarahCare as a F-grade franchise with a verdict score of 20 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.