Maryland-based non-medical home care franchise with unusually detailed Item 19 (full P&L for all 5 outlets) but a small, flat system
Franchises · Non Medical
View FDD (2025) · P&L Disclosed · Disclosure Quality: 8/10
Our Take
2nd Family has moderate revenue ($494K (single-territory median)). Outcomes will depend heavily on execution.
2nd Family is a Maryland-based non-medical home care franchise with full per-outlet P&L in its 2025 FDD. Single-territory revenue ranges $364K-$1.08M (avg $645K). $60K franchise fee, 5.5% royalty, $119,825-$217,500 total investment. 6 outlets across MD, NJ, OH, PA, TX. State regulators in MD, IL, and VA have flagged the franchisor financial condition.
This is the single most important question. The data below comes directly from the franchise's legally required disclosure document (FDD Item 19).
The typical franchisee earns $1.1M/year in gross revenue. The top performer at $2.8M pulls the average up, so plan for the median, not the mean.
This median revenue is in the top tier among non-medical home care franchises in our database.
Average Revenue
$1.4M
5 US franchises reporting
Median Revenue
$1.1M
More reliable benchmark
Top Performer
$2.8M
Bottom Performer
$364K
Why this matters for you:
What percentage of franchisees reach each revenue level? This tells you how realistic each target is.
Revenue is gross billings, not profit. After caregiver payroll, overhead, and franchise fees, owner profit is typically 10-25% of gross revenue.
2 of 5 franchisees (40%) are in the highest revenue band ($2M-$3M), while 2 (40%) are in the lowest (Under $500K).
A healthy system has most franchisees in the middle bands. Heavy clustering at the bottom is a warning sign.
Patience pays off: mature franchises earn 6.8x more than newer ones. Expect $364K in early years, growing to $2.5M as you build your client base.
This matters because new franchisees should expect year 1-2 revenue to be much lower than the system average. Plan your cash runway accordingly.
Revenue is trending up (+58% over 1 years) — a positive signal that the business model is gaining traction and existing franchisees are earning more over time.
Average revenue grew 58% from 2023 to 2024. Note that the number of reporting franchises also changed — more units reporting can shift the average.
Translating gross revenue into estimated owner profit using disclosed expense data
At median franchise revenue ($1.1M), the estimated owner take-home is roughly $281K/year — including a $50K owner salary.
This is a strong return relative to the investment — above typical franchise earnings.
Revenue is not profit. This table translates gross revenue into estimated owner take-home using the disclosed affiliate P&L data. The highlighted row is closest to the median revenue ($1.1M).
| Revenue | Gross Profit | Est. Net | Owner Take-Home |
|---|---|---|---|
| $500K | $240K | $107K | $157K |
| $750K | $360K | $161K | $211K |
| $1.0M | $479K | $214K | $264K |
| $1.1MMEDIAN | $517K | $231K | $281K |
| $1.5M | $719K | $322K | $372K |
| $2.0M | $959K | $429K | $479K |
| $3.0M | $1.4M | $643K | $693K |
Gross margin: 48% | Est. overhead: 20% | Franchise fees: 7% | Owner salary: $50K added
Margins from disclosed affiliate P&L. Your results will depend on market, management, and tenure.
For every $1 in revenue, about $0.48 stays after paying caregivers, and $0.00 reaches your pocket after all expenses and franchise fees.
This is real data from a franchisor-owned location — the closest thing to knowing actual profitability before you invest.
Actual P&L from the franchisor's affiliate-owned business (2024): $2.5M revenue broken down by expense category.
What this means for you:
L1 is the corporate/affiliate-operated outlet (2nd Family Home Health Services, LLC) operating since May 2012 in a larger-than-standard territory. Royalty (5.5%) and System Fees are imputed for comparability — the affiliate does not actually pay these. Mature operation, not representative of new single-territory franchisee.
Outlet count, growth trajectory, and churn — signals of system health
Flat growth — no net outlets added. The system isn't shrinking, but it's not expanding either.
This could mean the market is saturated, the franchise model isn't attracting new buyers, or the franchisor is pausing growth to focus on existing franchisees. Ask which.
What this means for you:
Upfront investment, ongoing fees, and minimum performance requirements
What it costs to get in and what you pay ongoing.
Veteran Discount: $5,000 off Initial Franchise Fee (single territory) for honorably discharged U.S. armed forces veterans
Setup Requirements: Home-based office permitted in most states (commercial office required for caregiver orientation and client meetings). Some states require commercial office space. Director of Nursing (RN) required. Caregivers must be CNAs or state equivalent.
First 6 months: no royalty/marketing fund minimums. Initial $10K grand opening burden in first 90 days.
Breakdown of the initial investment by category (midpoint estimates).
36% of total
18% of total · Range: $20K – $40K
9% of total · Range: $10K – $20K
7% of total · Range: $8K – $15K
5% of total · Range: $2K – $15K
5% of total · Range: $5K – $11K
3% of total · Range: $3K – $8K
3% of total · Range: $25 – $10K
3% of total
2% of total · Range: $2K – $5K
2% of total · Range: $2K – $5K
2% of total · Range: $600 – $6K
2% of total · Range: Not disclosed – $6K
2% of total · Range: $1K – $5K
1% of total · Range: $2K – $3K
1% of total · Range: Not disclosed – $3K
0% of total · Range: $200 – $500
Combined royalty + ad fund is 6% of gross revenue — below average, leaving you with more of each dollar earned.
These recurring fees come off the top of your revenue every month, regardless of profitability.
These fees are deducted before you see any profit. At $500K revenue with 6% combined fees, that's $30K/year going to the franchisor — before you pay rent, staff, or yourself.
Complexity, risk scoring, and key signals to watch
More watch items than strengths — pay extra attention to the risk factors below. (8 strengths, 9 watch items)
Your franchise is only as strong as the company behind it. A weak franchisor can't deliver on training, marketing, or technology promises — regardless of how good the business model is.
A financially weak franchisor may struggle to provide training, marketing, technology, and ongoing support. If they can't sustain themselves, your investment is at risk regardless of your own performance.
Median revenue per location vs. total system size across 20 home care franchises
Each dot is one franchise system. Revenue is median gross sales per location from the most recent FDD.Blue dot = this franchise.
The key insight
2nd Family is a small (6-outlet), Maryland-based non-medical home care franchise with the most transparent Item 19 disclosure of any franchise its size we have reviewed — per-outlet revenue, expense detail, monthly revenue, client hours, and caregiver headcount for every reporting location. Performance varies widely ($364K to $1.08M for single-territory franchisees); the best operator (L4) achieved 46% net margin in year 2. The system has not grown net in three years (6→7→6) and three state regulators (MD, IL, VA) have flagged the franchisor financial condition. Best fit for an owner-operator who values disclosure transparency, can self-fund a slow ramp, and is comfortable with an early-stage franchisor.
The key insight
In the 2025 FDD, the median single-territory franchisee earned $493,636 in 2024 gross revenue, with the best at $1,077,924 and the newest (1.5 years open) at $364,277. The one multi-territory franchisee (2 territories combined) earned $2.79M. Single-territory net margins after disclosed direct expenses ranged 21%-46% — but Item 19 excludes owner draws and several overhead categories, so cash-on-cash returns will be lower. Plan for a 2-3 year ramp.
| Time Open | Outlets | Average | Median | Range | % > Avg |
|---|---|---|---|---|---|
| Year 1-2 | $364,277 | $NaN | $NaN – $NaN | 0% | |
| Year 2-3 | $785,780 | $NaN | $NaN – $NaN | 50% | |
| Year 4-5 | $2,794,170 | $NaN | $NaN – $NaN | 100% | |
| 12+ years (corporate) | $2,461,537 | $NaN | $NaN – $NaN | 100% |
Average
$645,279
Median
$493,636
Low
$364,277
High
$1,077,924
| Tenure | Businesses | Average Revenue |
|---|---|---|
| 1-2 years (L5, opened Jun 2023) | 1 | $NaN |
| 2-3 years (L3 + L4, both opened 2022) | 2 | $NaN |
Average
$2,794,170
Median
$2,794,170
Low
$2,794,170
High
$2,794,170
System revenue grew from $4,538,640 to $7,191,544 (2023-2024), a 58% increase. Locations grew from 7 to 6.
| Year | Outlets | System Revenue |
|---|---|---|
| 2023 | 7 | $4,538,640 |
| 2024 | 6 | $7,191,544 |
| Year | Franchised | Company | Total | Net Change |
|---|---|---|---|---|
| 2022 | 5 | 1 | 6 | +2 |
| 2023 | 6 | 1 | 7 | +1 |
| 2024 | 5 | 1 | 6 | -1 |
| Year | Opened | Terminated | Non-Renewals | Reacquired | Transfers |
|---|---|---|---|---|---|
| 2022 | 2 | 0 | 0 | 0 | 0 |
| 2023 | 1 | 0 | 0 | 0 | 0 |
| 2024 | 0 | 0 | 0 | 0 | 0 |
1 company-owned outlet in Maryland, operated by affiliate 2nd Family Home Health Services, LLC since May 2012.
No franchisee has signed confidentiality clauses during the last three years (Item 20 disclosure) — a positive signal for due diligence.
The key insight
Three state securities regulators (MD, IL, VA) have required 2nd Family Franchising, LLC to defer all initial franchise fees until pre-opening obligations are complete — a financial assurance mechanism state regulators reserve for franchisors whose audited statements suggest they may struggle to meet support obligations. The franchisor entity has no parent operating revenue: its only income streams are royalty (~$400K based on system revenue), SMF (~$70K), initial fees, and incidental fees. With only 5 franchisees paying ongoing fees, the cushion is thin.
Maryland, Illinois, and Virginia state regulators have all required the franchisor to defer initial fees until pre-opening obligations are complete, citing financial condition concerns. Audited financial statements are in FDD Exhibit C (not extracted in this summary).
The key insight
Three state regulators (Maryland, Illinois, Virginia) have imposed initial fee deferral requirements, citing the franchisor financial condition — the single most serious risk in the FDD. Other concerns: flat system growth (6→7→6 over three years with one NJ closure), only 4-5 single-territory data points to validate Item 19, 5.5% royalty above the 5% industry norm, spouse personal guaranty required, and Maryland forum for disputes. Wide performance variance: best single-territory franchisee earns 3x the newest.
Key considerations before investing — your outcome depends more on you than the brand.
The key insight
Total single-territory investment is $119,825-$217,500, including a $60,000 initial franchise fee. Multi-territory tiered IFF goes down to $40,000/territory at 6-9 territories. Royalty is 5.5% of Gross Revenue with escalating monthly minimums ($500 → $800 → $1,200 single / $2,000 multi). System Marketing Fund is greater of $500 or 1% of revenue (up to 2%). Local marketing minimum reaches 2% of revenue by month 13. Effective ongoing fee burden runs roughly 9.5-11% of revenue.
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $60,000 | $60,000 |
| Training Expenses | $2,000 | $5,000 |
| Rent Deposits | $3,000 | $8,000 |
| Utilities Deposits | $200 | $500 |
| Leasehold Improvements | $0 | $3,000 |
| Office FF&E and Supplies | $0 | $6,000 |
| Signage | $600 | $6,000 |
| Licenses and Permits | $25 | $10,000 |
| Licensing Consultant Services Fee | $2,000 | $15,000 |
| Computer Equipment | $1,500 | $3,000 |
| Software Subscriptions | $5,000 | $11,000 |
| Initial Inventory | $2,000 | $5,000 |
| Professional Fees | $1,000 | $5,000 |
| Grand Opening Advertising | $10,000 | $20,000 |
| Insurance (annual) | $7,500 | $15,000 |
| System Platforms Charge | $5,000 | $5,000 |
| Operating Expenses / Additional Funds (3 months) | $20,000 | $40,000 |
| Total | $119,825 | $217,500 |
Single territory. Multi-territory (2-9): $169,825-$521,500 (varies primarily with Initial Franchise Fee scaling and rent deposits).
Total Hours
40
Instructor-Led
40h
The key insight
Best fit for: owner-operators in MD, NJ, OH, PA, or TX (or willing to be the first in another state); buyers who value financial transparency and are comfortable being one of 5-10 franchisees in an early-stage system; veterans (eligible for $5,000 IFF discount); operators with cash reserves to absorb a 2-3 year revenue ramp. Skip if you want: a proven, scaled system; deep peer network for benchmarking; franchisor balance sheet strength; or geographic flexibility outside the current 5 states.
What it takes to operate, grow, and stay compliant inside the system.
Variance Warning
Care settings and agency models 2nd Family sells into.
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