Touching Hearts
Bottom line
- Total investment $85K – $147K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $936K).
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Touching Hearts unit return on the cash you put in?
Unlevered ROIC · per unit
162%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Touching Hearts units return on equity?
Equity IRR · 5-yr
32.2%
4.03× MOIC
Year-1 DSCR
2.51×
EBITDA ÷ debt service
Equity required
$6.7M
on $16.7M purchase
Total debt
$10.0M
SBA $5.0M + senior + seller note
Overview
About
Touching Hearts is an in-home senior care franchise providing companionship, personal care, and non-medical assistance to elderly clients. Franchisees recruit, train, and manage care aides who visit clients' homes, handling daily tasks like meal prep, medication reminders, bathing assistance, and social engagement. Revenue is generated through hourly billing to clients and families, with typical service delivery in a defined protected territory.
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 · 3 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
In-home senior care franchise with moderate-to-high risk driven by missing profitability data, stagnant unit count, and unclear return-on-investment validation.
Score breakdown · what drove the 49 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — impossible to validate profitability claims against $1.11M average revenue
- 02MINOROnly 65 units with unknown growth trajectory — mature or stagnant system size raises scalability concerns
- 03MEDHigh initial investment ($84.6K–$147.2K) relative to disclosed financials creates unclear ROI visibility
- 04MINOR6% royalty on gross (not net) revenues — franchisees pay regardless of profitability
- 05MINORFranchise fee of $49,500 represents 59% of minimum total investment — top-heavy cost structure
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
49 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Touching Hearts · FDD (2025) PDF