SarahCare Franchise Cost, Revenue & Review 2026
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]. The 2025 FDD does not disclose unit-level revenue (no Item 19). 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 →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $351K – $921K
- 59th pct Education
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- 5.0%
- 2nd 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 avg · 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.
- RETURNSItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
- RISKVerdict F (Weakest tier), verdict score 21/100 (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).
- 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
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 is about average for a 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%
- Percentage of gross sales · typical 6–8%
- Ad fund
- -n/d
- 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 |
| Total fee load | 5.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
SarahCare did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one SarahCare unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
15%
Below the 30–60% attractive-franchise band
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
- Item 19 type
- gross sales
- Sample size
- 19
- vs category median 17
- Range (low → high)
- $35K→$3.0M
- Cohort dispersion (min → max)
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 0 / 10
- vs category median 4 / 10 · below
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.
Fee burden
Total ongoing fee load of 5.0% — below the Education average of 10.6%.
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
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 averages
How SarahCare Compares
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
- 0.0%
- 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
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 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.
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)
- 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.
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.
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)
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 21 / 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 | 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
22 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?
SarahCare does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 21 out of 100 (higher is better), 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.
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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.