SarahCareFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A SarahCare franchise requires a total initial investment of $351K – $921K, including a $39K franchise fee. Per the 2025 FDD, average unit revenue was $1.5M[2]. SBA 7(a) loans show a 33.3% charge-off rate across 17 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $351K – $921K
- 51st pct Education
- Avg gross sales
- $1.5M
- 36th pct Education
- Royalty
- N/A
- Units
- 21
- 37th pct Education
- SBA default
- 33.3%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
33.3% of SBA loans charged off across 17 loans, above the 16% franchise average.
Franchising since 2000. Systems this mature have refined operations and brand recognition.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $351K – $921K including a $39K franchise fee.
- Average unit revenue of $1.5M/year.
- Verdict C (Average) with a risk score of 68/100. 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, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- SARAH ADULT DAY SERVICES, INC.
- CEO title
- Founder, President and Chief Executive Officer
- Merle D. Griff
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- OH
- HQ
- 4942 Higbee Avenue NW, Suite H, Canton, Ohio 44718
- Auditor
- Stinnett, Padrutt & Aranyosi Co.
- Audited financials
- Franchisor revenue
- $699K
- vs $727K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
SarahCare operates senior care or home health service franchises, with franchisees likely managing day-to-day operations including hiring/training caregivers, scheduling client visits, managing client relationships, billing/invoicing, and regulatory compliance. Franchisees function as local service operators dependent on recurring client revenue and staff retention.
- CEO
- Merle D. Griff
- Headquarters
- OH
- Founded
- 1998
- FDD year
- 2025
- States available
- 12
FDD Item 7 · 2025 filing · 14 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$209K
14.0% margin
Unlevered ROIC
28%
EBITDA / total invested capital
Payback
3.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $351K – $921K
- Near category avg vs category
- Liquid capital req'd
- $50K – $156K
- Near category avg vs category
- Franchise fee
- $15K – $39K
- Better than avg vs category
- Royalty
- Greater of 5% of monthly Gross Sales or $200
- Ad fund
- -n/d
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | greater of 5% of monthly Gross Sales or $200 |
| Technology fee | $5K |
| Training fee | $200 |
| Transfer fee | $20K |
| Renewal fee | $20K |
| 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.
Financial Performance
- Avg gross sales
- $1.5M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 19 units
- vs category median 14
- Range (low → high)
- $35K→$3.0M
- Cohort dispersion (min → max)
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 237 Education brands
vs Education averages
How SarahCare Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 21
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- -9.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 24 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.
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%
- 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
- N/A
- Loans approved 2021+
- Active lenders
- 10
- Defaults
- 4
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into SarahCare's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
A 33.3% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
SarahCare presents caution-level risk due to a stagnant 21-unit system, undisclosed financials, documented franchisor-franchisee litigation over royalty enforcement, and unvalidated ROI potential at high investment levels.
Litigation (Item 3)
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.⚠ Going-concern note flagged
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 68 / 100 rating
- 01MINOROnly 21 units with unknown growth trajectory indicates stagnant or declining system
- 02HIGHTwo separate litigation events (royalty non-payment + non-compete disputes) within recent history suggest systemic franchisor-franchisee relationship issues
- 03MEDFinancial performance metrics (average revenue and net income) completely undisclosed in FDD Item 19, preventing ROI validation
- 04MEDHigh investment range ($351K–$921K) with no disclosed profitability benchmarks creates acute financial risk
- 05MINORHybrid royalty structure (5% or $200 minimum) may be unsustainable for low-revenue locations, evidenced by past collection lawsuits
- 06MINORSettlements requiring 'new franchise agreements' suggests franchisor had to renegotiate terms, indicating original model stress
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Zip Codes |
| Protected territory | 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 |
| 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
- Field support
- 7 hrs/yr
- On-site visits per year
- POS system
- Storii Care
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Storii Care
Item 20 · call current owners
Franchisee Contacts
38 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
SarahCare · FDD (2025) PDF
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 $1.5M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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. 1 new units were opened in the latest reporting year.
Is SarahCare a good franchise to buy?
FranchiseVerdict rates SarahCare as a C-grade franchise with a risk score of 68 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
Are you the franchisor?
If you represent SarahCare, you can request corrections or provide updated information.
Claim this brandOther Education franchises
Compare similar franchise opportunities in the Education category
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.