Founder-owned home care franchise with full P&L disclosure but state-mandated financial warning — DO NOT PROCEED recommendation
Franchises · Non Medical Franchises
FDD 2026 · P&L Disclosed · Disclosure Quality: 9/10
Our Take
A Better Solution (ABS) has moderate revenue ($595K). Outcomes will depend heavily on execution.
A Better Solution (ABS) is a small, founder-owned non-medical home care franchise with 30 outlets. STATE-MANDATED WARNING: regulators found the franchisor financially questionable to provide services. Median franchisee revenue $595K. Full affiliate P&L disclosed (46.5% gross margin, 11.1% net). 3-year profitability collapse and pending fraud lawsuit. DO NOT PROCEED recommendation.
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 $595K/year in gross revenue. The top performer at $2.3M pulls the average up, so plan for the median, not the mean.
This is above the typical median for non-medical home care franchises ($400K-$600K range).
Average Revenue
$811K
Median Revenue
$595K
More reliable benchmark
Top Performer
$2.3M
Bottom Performer
Not disclosed
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 23 franchisees (9%) are in the highest revenue band (Under $250K), while 6 (26%) are in the lowest (Over $1M).
A healthy system has most franchisees in the middle bands. Heavy clustering at the bottom is a warning sign.
Estimated using industry benchmark margins (no P&L disclosed by this franchise)
At median franchise revenue ($595K), the estimated owner take-home is roughly $145K/year — including a $50K owner salary.
A reasonable return, competitive with salaried management roles while building equity.
Revenue is not profit. This table translates gross revenue into estimated owner take-home using industry benchmark margins. The highlighted row is closest to the median revenue ($595K).
| Revenue | Gross Profit | Est. Net | Owner Take-Home |
|---|---|---|---|
| $250K | $105K | $40K | $90K |
| $500K | $210K | $80K | $130K |
| $595KMEDIAN | $250K | $95K | $145K |
| $750K | $315K | $120K | $170K |
| $1.0M | $420K | $160K | $210K |
| $1.5M | $630K | $240K | $290K |
| $2.0M | $840K | $320K | $370K |
Gross margin: 42% | Est. overhead: 20% | Franchise fees: 6% | Owner salary: $50K added
Margins estimated from industry benchmarks. Your results will depend on market, management, and tenure.
Outlet count, growth trajectory, and churn — signals of system health
Moderate, steady growth — the system is expanding without overextending. A balanced signal.
Steady growth suggests the franchisor is being selective about new franchisees, which typically means better support per franchise.
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 IFF
Setup Requirements: Agency Model. Commercial office required (125-500 sq ft). Two FTE from day one (Director of Business Development + Staffing Manager).
3-month working capital in FDD is shortest disclosure — likely understates true need by 50-80%.
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. (5 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.
Revenue profile and model-level profitability.
Derived estimate using affiliate benchmarks.
Calculated estimate. Not directly provided by the franchisor.
Legal, structural, and governance flags that may materially affect operator outcomes.
Contingent Liability
Litigation Summary
What it takes to operate, grow, and stay compliant inside the system.
How A Better Solution (ABS) appears to differentiate.
Griswold: 182 outlets, $1.42M single-territory avg, 4% royalty, $23M franchisor revenue. ABS: 30 outlets, $595K median, 5% royalty, $1.1M revenue. Griswold wins on revenue, fees, and scale. Both have franchisor financial concerns but Griswold has $15M equity cushion vs ABS's $197K.
ComForCare: 270 outlets, $1.3M avg, $20M franchisor revenue, PE-backed. ABS: 30 outlets, $811K avg, $1.1M franchisor revenue, founder-owned. ComForCare has 9x the outlets and 17x the franchisor revenue.
Home Instead: 619 outlets, $2.6M avg. ABS is 1/20th the size with less than 1/4 the revenue. Not comparable in scale.
Variance Warning
Right at Home
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Synergy HomeCare
One of the largest and fastest-growing non-medical home care franchises — 626 units, 49% gross profit margin disclosed, 38% growth in 3 years, PE-backed by Levine Leichtman Capital Partners
Comfort Keepers
3rd-largest non-medical home care franchise — 624 outlets, $1.28M average revenue, Private Duty Nursing option, PE-backed by The Halifax Group, 26 years of franchising
CareBuilders at Home
Unique home care franchise — franchisor is employer of record for all caregivers. 28 outlets, $1.91M avg revenue, 35% gross margin, 9% royalty. Backed by ATC Healthcare ($142M revenue). Growing 75% in 3 years.
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