Touching HeartsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Touching Hearts franchise requires a total initial investment of $85K – $147K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.1M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $85K – $147K
- 32nd pct Senior Care
- Avg gross sales
- $1.1M
- 36th pct Senior Care
- Royalty
- 6.0%
- 38th pct Senior Care
- Units
- 65
- 64th pct Senior Care
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Senior Care · color = vs category peers
Green = >15% above Senior Care 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
Each dollar invested generates 9.6x in gross revenue, well above the typical 1.5-2.5x range.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $85K – $147K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $936K).
- Verdict A (Top Quintile) with a risk score of 48/100.
- 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
- Touching Hearts, Inc.
- Incorporated in
- MN
- HQ
- 7900 W 78th St., Suite 410, Minneapolis, Minnesota 55439
- Auditor
- Eide Bailly LLP
- Audited financials
- Franchisor revenue
- $2.8M
- vs $3.0M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
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.
- CEO
- Todd Treml
- Headquarters
- MN
- Founded
- 2006
- FDD year
- 2025
- States available
- 19
FDD Item 7 · 2025 filing · 13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Initial Training Program Expenses | $3K | $8K | |
| Caregiver Training Expenses | $0 | $2K | |
| Office Lease Deposit | $0 | $5K | |
| Office Equipment and Computer Related Expenses | $3K | $6K | |
| Professional/Legal Fees | $1K | $5K | |
| License and Permit Costs | $2K | $4K | |
| Initial Opening Marketing | $3K | $5K | |
| Signage | $500 | $1K | |
| Furniture, Fixtures and Equipment | $500 | $2K | |
| Real Estate and Improvements | $0 | $6K | |
| Insurance | $3K | $6K | |
| Additional Funds - 3 months | $20K | $50K | |
| Total initial investment | $85K | $147K |
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
$189K
17.0% margin
Unlevered ROIC
125%
EBITDA / total invested capital
Payback
10 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $85K – $147K
- Better than avg vs category
- Liquid capital req'd
- $20K – $50K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $200 |
| Transfer fee | $40 |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $1.1M
- Per unit, per year
- Median gross sales
- $936K
- Item 19 type
- Historic Financial Performance
- Sample size
- 62 units
- vs category median 22 · large
- Range (low → high)
- $40K→$5.9M
- Cohort dispersion (min → max)
- Quartile band
- $222K→$2.4M
- Bottom 25% → top 25%
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 70 Senior Care brands
Revenue is 9.6x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Senior Care averages
How Touching Hearts Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 65
- Opened
- 3
- Last reporting year
- Closed
- 3
- Turnover rate
- 4.6%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 2
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 6.2%
- Owners selling to other franchisees
- Continuity rate
- 95.6%
- Units that stayed open
- Ceased ops
- 4.6%
- Units that stopped operating
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 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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $20K
- Median loan
- $20K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Touching Hearts's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $49,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Eide Bailly LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 48 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Senior Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- WellSky
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: WellSky
Item 20 · call current owners
Franchisee Contacts
49 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Touching Hearts · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Touching Hearts franchise?
The total investment to open a Touching Hearts franchise ranges from $85K – $147K, 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 Touching Hearts franchise owners earn?
According to Item 19 of the Touching Hearts FDD, the average gross sales per unit is $1.1M. The median is $936K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Touching Hearts's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Touching Hearts (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Touching Hearts franchise locations are there?
As of their most recent FDD filing, Touching Hearts has 65 total units in the United States, including 65 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Touching Hearts a good franchise to buy?
FranchiseVerdict rates Touching Hearts as a A-grade franchise with a risk score of 48 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.
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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.