PE-backed home care franchise (Authority Brands / Apax Partners) — 224 territories, 5% royalty, $50K franchise fee, detailed Item 19 with mature franchisee breakouts
Franchises · Non Medical Franchises
View FDD (2025) · Revenue Data Included · Disclosure Quality: 9/10
Our Take
Homewatch CareGivers shows strong revenue ($728K) across a proven system.
Non-medical home care franchise backed by Authority Brands (Apax Partners PE). 126 franchisees operating 224 territories. $50K franchise fee with $121,640-$177,830 total investment. 5% royalty with graduated brand fund. Detailed Item 19: $1.37M avg/territory, $728K median, 16% YoY growth. 14% systemwide CAGR over 3 years. Mandatory Care+ software and Homewatch Connect monitoring. 10-year term, one 10-year renewal.
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 $728K/year — but top performers reach $29.8M, creating a misleading average. Only 19% (37 of 196 territories) of franchisees actually hit the average.
This is above the typical median for non-medical home care franchises ($400K-$600K range).
Average Revenue
$1.4M
Median Revenue
$728K
More reliable benchmark
Top Performer
$29.8M
Bottom Performer
$31K
Why this matters for you:
11 of 87 franchisees (13%) are in the highest revenue band ($5M+), while 15 (17%) 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 13.6x more than newer ones. Expect $78K in early years, growing to $927K 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.
Estimated using industry benchmark margins (no P&L disclosed by this franchise)
At median franchise revenue ($728K), 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 ($728K).
| Revenue | Gross Profit | Est. Net | Owner Take-Home |
|---|---|---|---|
| $250K | $105K | $32K | $82K |
| $500K | $210K | $63K | $113K |
| $750KMEDIAN | $315K | $95K | $145K |
| $1.0M | $420K | $126K | $176K |
| $1.5M | $630K | $190K | $240K |
| $2.0M | $840K | $253K | $303K |
| $3.0M | $1.3M | $379K | $429K |
Gross margin: 42% | Est. overhead: 20% | Franchise fees: 9% | 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.
Setup Requirements: Office-based. Must maintain approved office location within territory. Protected territory based on 35,000-38,000 seniors.
Does not include rent, insurance, payroll, or caregiver wages. Franchisor recommends $75K-$100K additional capital beyond stated investment range.
Breakdown of the initial investment by category (midpoint estimates).
42% of total · Range: $50K – $75K
33% of total
9% of total · Range: $8K – $18K
4% of total · Range: $3K – $8K
3% of total · Range: $500 – $8K
3% of total · Range: $3K – $6K
2% of total · Range: $2K – $4K
2% of total · Range: $1K – $5K
2% of total
1% of total
0% of total · Range: $250 – $500
Combined royalty + ad fund is 5% 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 5% combined fees, that's $25K/year going to the franchisor — before you pay rent, staff, or yourself.
The franchisor requires you to hit these revenue milestones. Falling short can result in territory reduction or franchise termination. These are not suggestions — they are contractual obligations.
Complexity, risk scoring, and key signals to watch
Roughly balanced strengths and watch items — typical for most franchise systems. (8 strengths, 8 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.
Key considerations before investing — your outcome depends more on you than the brand.
| Item | Low | High |
|---|---|---|
| Franchise Fee | $50,000 | $50,000 |
| Compliance Toolkit | $2,500 | $2,500 |
| Care+ Initial Software | $1,830 | $1,830 |
| Telephone System | $250 | $500 |
| Travel/Living Training | $2,500 | $5,500 |
| Office Equipment/Hardware/Software | $1,060 | $4,500 |
| Lease and Security Deposits | $3,000 | $8,000 |
| Office Furniture | $2,000 | $4,000 |
| Insurance | $8,000 | $18,000 |
| Licenses/Permits/Professional Fees | $500 | $8,000 |
| Additional Funds (3 months) | $50,000 | $75,000 |
| Total | $121,640 | $177,830 |
Includes $54,330 paid to franchisor. Franchisor strongly recommends additional $75,000-$100,000 to invest in year 1.
Legal, structural, and governance flags that may materially affect operator outcomes.
Litigation Summary
What it takes to operate, grow, and stay compliant inside the system.
Selected thresholds from the agreement.
How Homewatch CareGivers appears to differentiate.
BrightStar Care: ~380 outlets, similar PE backing. Notable: Homewatch President (Houghton) and SVP (Wiederin) both came from BrightStar. Homewatch is smaller but provides direct caregiver cost data (50%) that BrightStar does not disclose.
Home Instead: 625 outlets, $2.61M avg, $2.26M median, flat 5% royalty. Homewatch: 224 territories, $1.37M avg, $728K median per territory, but mature franchisees average $2.98M. Homewatch has PE backing (like HI with Honor), graduated brand fund, and more detailed Item 19 with cost data. HI has larger system and higher per-unit revenue.
Right at Home: 508 outlets, $1.56M avg. Homewatch is smaller but mature franchisees ($2.98M avg) outperform. Homewatch provides caregiver cost data (50%) and revenue by hours of care — data RAH does not disclose.
Variance Warning
Right at Home
4th-largest non-medical home care franchise — 508 franchised offices, $1.56M average net billings, 24 years of franchising, Specialized Nursing Services option, backed by Investors Management Corporation
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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