Town Square Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Town Square is an adult day care franchise serving people with Alzheimer's and dementia using reminiscence therapy in a 1950s-themed indoor town setting. Franchisees run the centers, managing staff, programming, and care.
FranchiseVerdict summary · 2026
A Town Square franchise requires a total initial investment of $639K – $1.5M, including a $100K franchise fee and an ongoing 7.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.3M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 10 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $639K – $1.5M
- 67th pct Education
- Avg gross sales
- $1.3M
- Incl. company outlets28th pct Education
- Royalty
- 7.0%
- 18th pct Education
- Units
- 11
- 30th pct Education
- SBA charge-off
- 0.0%
- % 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 $639K – $1.5M including a $100K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.3M/year (median $1.4M) (includes company-owned outlets).
- RISKVerdict B (Above average), verdict score 53/100 (higher is better). SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Town Square Franchising LLC
- Parent company
- SH Town Square Franchising, Inc.
- Ultimate parent
- SHF Holding Company, LLC
- Predecessor
- SH Town Square Franchising, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Founder
- Peter Ross
- Incorporated in
- Delaware
- HQ
- 9708 Belair Road, Perry Hall, Maryland 21236
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $862K
- Most recent fiscal year
Affiliated brands
- of ours
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Peter Ross
- Headquarters
- Maryland
- FDD year
- 2026
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 63% above the typical education franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $100K | $100K | |
| Travel and Living Expenses While Training | $2K | $7K | |
| Lease, Utility, and Security Deposits | $30K | $60K | |
| Building Permit | $2K | $30K | |
| Construction | $500K | $800K | |
| Signage | $10K | $22K | |
| Furniture & Fixtures and Equipment (including Computer System) | $35K | $64K | |
| Supplies | $10K | $20K | |
| Grand Opening and Initial Advertising | $10K | $20K | |
| Business Licenses | $1K | $4K | |
| Legal/Professional Fees | $30K | $46K | |
| Insurance | $13K | $25K | |
| Recruitment | $5K | $15K | |
| Additional Funds (3 months) | $50K | $100K | |
| Project Management Fee | $25K | $25K | |
| Architecture Design | $25K | $50K | |
| Total initial investment | $847K | $1.4M |
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
- $639K – $1.5M
- Bottom third — review vs category
- Liquid capital req'd
- $75K – $165K
- Middle of category vs category
- Franchise fee
- $100K – $100K
- Bottom third — review vs category
- Royalty
- 7.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $25K |
| Inventory (initial) | $8K – $18K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 66% above the education norm.
Includes company-owned outlets
Source: FDD 2026 · Item 19
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
$199K
15.0% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
6.0 yrs
cash-on-cash, unlevered
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Town Square unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
17%
Below the 30–60% attractive-franchise band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Town Square units return on equity?
Equity IRR · 5-yr
46.3%
6.70× MOIC
Year-1 DSCR
1.95×
EBITDA ÷ debt service
Equity required
$2.4M
on $10.6M purchase
Total debt
$8.2M
SBA $5.0M + senior + seller note
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: 2026 FDD
Financial Performance
Includes company-owned outlets
- Avg gross sales
- $1.3M
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
- Median gross sales
- $1.4M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Historical Gross Revenue and Membership data for existing Centers (revenue-only; whole-unit)
- Sample size
- 6 outlets
- vs category median 17 · small
- Range (low → high)
- $523K→$2.4M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
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 $1.3M/year in gross sales. Revenue-to-investment ratio: 1.2x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 8.0% — below the Education average of 10.6%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Multi-unit rate
Only 9% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Town Square Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 11
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- 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
- 1%
- vs corporate-owned
- Multi-unit owners
- 9.1%
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 11
- Franchisor's next-year forecast
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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
- 10
- Loan volume
- $21.0M
- Median loan
- $2.1M
- average
- 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)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
Vintage analysis
Town Square charge-off rate by loan vintage
Top lenders financing Town Square franchisees
Showing 3 of 7 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 Town Square'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 7 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
With a 0.0% charge-off rate across 10 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower 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
No litigation, bankruptcy, or going-concern, positive net worth of $500,000, audited financials, and Item 19 disclosed. Minor concern is the very small/young 8-unit adult day-care system (franchising since 2018) with limited scale.
Litigation (Item 3)
No litigation information is required to be disclosed in Item 3.
Largest disclosed settlement: $200,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 53 / 100 verdict
- 01MINORSmall 8-unit system
- 02MINORModest net worth $500,000
- 03MEDClean: no litigation, audited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Territory population | 25,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation information is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 0 hrs
- Training location
- Perry Hall, Maryland (our home office) or designated location, including online instruction
- Ongoing training
- Required
- Site selection
- joint
- Franchisor financing
- Not offered
- Item 10
- POS system
- XCITE!
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: XCITE!
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Town Square · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Town Square franchise?
The total investment to open a Town Square franchise ranges from $639K – $1.5M, with an initial franchise fee of $100K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Town Square franchise owners earn?
According to Item 19 of the Town Square FDD, the average gross sales per unit is $1.3M. The median is $1.4M. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Town Square 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 Town Square FDD and qualifies whose outlets they describe.
What is Town Square's franchise failure rate?
Based on SBA 7(a) loan data, Town Square has a charge-off rate of 0.0% across 10 loans, meaning 0.0% 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 Town Square franchise locations are there?
As of their most recent FDD filing, Town Square has 11 total units in the United States, including 10 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is Town Square a good franchise to buy?
FranchiseVerdict rates Town Square as a B-grade franchise with a verdict score of 53 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 Town Square, you can request corrections or provide updated information.
Other 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.