Non-medical home care franchise with $2M affiliate P&L disclosure, tiered pricing from $60K, 47% gross margin, and strong California market presence
Franchises · Non Medical Franchises · FDD 2025
Exceptional Item 19 with affiliate P&L ($2M revenue, 47% gross margin, 22.6% net after all disclosed expenses) plus 4-year franchisee revenue trend. Tiered IFF ($60K-$185K). Multiple revenue streams: home care + facility staffing + referrals + training university.
Non-Medical Home Care, Caregiver Staffing, SNF/RCFE Staffing, Senior Living Referrals
1Heart Caregiver Services has 26 US outlets with $663K median revenue. The disclosed P&L data is a strong positive for due diligence. However, state regulators have flagged the franchisor's financial condition — proceed with caution and verify the franchisor's ability to deliver ongoing support.
Disclosed P&L shows 47% gross margins — you can model real profitability, not just revenue
Wide performance gap: median is $663K but average is $1.3M. A few top performers inflate the average — plan for the median, not the mean
System grew 53% recently (17 to 26 outlets) — strong momentum, but fast growth can strain franchisor support
1Heart Caregiver Services is a growing CA/NV-focused non-medical home care franchise with exceptional financial transparency. The affiliate P&L shows $2M revenue with 47% gross margin, and franchisee averages show strong growth ($259K→$1.27M over 4 years). Multiple revenue streams (home care + facility staffing + referrals + training) differentiate it from pure companion care. Key concerns: state-flagged franchisor financial health, geographic concentration, escalating minimum royalties, and wide performance variance.
Our assessments reflect independent analysis of publicly-filed Franchise Disclosure Documents, state registration disclosures, and court filings. This is not legal, financial, or investment advice. Franchisors may submit corrections through our vendor portal.
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 $663K/year — but top performers reach $5.2M, creating a misleading average. Only 40% (8 of 20) of franchisees actually hit the average.
This is above the typical median for non-medical home care franchises ($400K-$600K range).
Average Revenue
$1.3M
20 US franchises reporting
Median Revenue
$663K
More reliable benchmark
Top Performer
$5.2M
Bottom Performer
$155K
Why this matters for you:
2 of 20 franchisees (10%) are in the highest revenue band (Over $3.5M), while 3 (15%) are in the lowest (Under $300K).
A healthy system has most franchisees in the middle bands. Heavy clustering at the bottom is a warning sign.
Revenue is trending up (+390% over 3 years) — a positive signal that the business model is gaining traction and existing franchisees are earning more over time.
Average revenue grew 390% from 2021 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
For every $1 in revenue, about $0.47 stays after paying caregivers, and $0.16 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): $2.0M revenue broken down by expense category.
What this means for you:
Affiliate-owned, ~2 territories, mature since 2008. Larger premises and more staff than typical franchisee. Imputed royalty/brand fund are illustrative only.
At median franchise revenue ($663K), the estimated owner take-home is roughly $153K/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 ($663K).
| Revenue | Gross Profit | Est. Net | Owner Take-Home |
|---|---|---|---|
| $250K | $118K | $39K | $89K |
| $500K | $235K | $78K | $128K |
| $663KMEDIAN | $312K | $103K | $153K |
| $750K | $353K | $117K | $167K |
| $1.0M | $470K | $156K | $206K |
| $1.5M | $705K | $234K | $284K |
| $2.0M | $941K | $311K | $361K |
| $3.0M | $1.4M | $467K | $517K |
Gross margin: 47% | Est. overhead: 24% | Franchise fees: 7% | Owner salary: $50K added
Margins from disclosed affiliate P&L. Your results will depend on market, management, and tenure.
Outlet count, growth trajectory, and churn — signals of system health
Strong growth trajectory — the system is expanding and franchisees are staying, which signals a healthy business model.
Growing systems tend to have better brand recognition, more negotiating power with vendors, and more peer support. But rapid growth can also strain franchisor resources.
What this means for you:
Upfront investment, ongoing fees, and minimum performance requirements
What you need to write checks for before earning your first dollar.
First 6 months: no royalty minimum. Does not include rent ($750-$1,500/mo), insurance, payroll.
Key metrics that signal whether franchisees in this system tend to succeed or struggle.
Small system — less track record
Net outlet growth over 3 years
Terminations + closures as % of total system
Franchise agreements signed but never operationalized
Transfers suggest a liquid resale market — good for exit planning
What fraction of franchisees actually hit the system average
Combined royalty + ad fund is 7% of gross revenue — in line with the industry average for non-medical home care franchises.
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 7% combined fees, that's $35K/year going to the franchisor — before you pay rent, staff, or yourself.
Complexity, risk scoring, and key signals to watch
Moderate complexity — manageable for most operators with proper training. The biggest challenge area is regulatory (8/10).
Each dimension scored 1-10. Higher = more complex or risky. The shape shows where this franchise's challenges concentrate.
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.
Key considerations before investing — your outcome depends more on you than the brand.
| Item | Low | High |
|---|---|---|
| Franchise Fee | $60,000 | $60,000 |
| Real Estate/Rent (3 months) | $2,250 | $4,500 |
| Utility Deposits | $0 | $225 |
| Leasehold Improvements | $0 | $1,500 |
| Insurance | $2,500 | $3,500 |
| Office Supplies | $500 | $1,125 |
| Training (travel/lodging) | $500 | $3,000 |
| Signage | $500 | $2,500 |
| Furniture, Fixtures & Equipment | $200 | $2,700 |
| Marketing Package Fee | $1,500 | $1,500 |
| Computer Equipment & Software | $1,125 | $3,000 |
| Dues & Subscriptions | $475 | $925 |
| Licenses & Permits | $100 | $6,285 |
| Legal & Accounting | $1,000 | $7,500 |
| Additional Funds (3 months) | $55,000 | $55,000 |
| Total | $125,650 | $153,260 |
Single territory. Multi-territory: $165,650-$193,260 (2 terr), $200,650-$228,260 (3 terr), $230,650-$258,260 (4 terr), $250,650-$278,260 (5 terr).
Total Hours
44
Overview, fees, territory, training, and raw data tables
Legal Entity
1HCS Franchising LLC
State of Organization
California
Headquarters
16530 Ventura Blvd., Suite 500, Encino, CA 91436
Business Model
Office-based (400-1,000 sq ft leased facility). Must operate from approved office, not from residence. 5 days/week 9am-5pm minimum with assigned office staff.
Parent Company
None
Franchise Fee
$60,000 (single territory). Tiered: $100K (2), $135K (3), $165K (4), $185K (5). Conversion: $30,000.
Total Investment
$125,650 – $153,260
Royalty
5% of Gross Revenue (greater of 5% or minimum royalty)
Marketing
2% of Gross Revenue (Brand Fund Contribution)
Investment Notes: Single territory. Multi-territory: $165,650-$193,260 (2 terr), $200,650-$228,260 (3 terr), $230,650-$258,260 (4 terr), $250,650-$278,260 (5 terr).
Technology Fee: $6-$15 per email account per month
data — Part I: Affiliate-owned business (LAC) P&L for 2024. Part II: Franchisee gross revenue averages for 2021-2024. Not audited.
Cost to launch
First 6 months: no royalty minimum. Does not include rent ($750-$1,500/mo), insurance, payroll.
What franchisees earn
Avg Revenue
$1,268,227 (2024, 20 reporting franchises)
Median Revenue
$662,526 (2024)
Gross Margin
47.03% (affiliate-owned, ~2 territory mature business)%
Term
10 years
Renewal
$0 (not currently assessed)
Disputes
Arbitration in Los Angeles, CA (except IP/non-compete/trade secrets). California law.
Financing
Not available
Territory
Exclusive territory by ZIP codes. Minimum population base of 35,000 seniors (70+ years old). Boundaries based on population, median age, senior living facilities, hospitals, market potential, proximity to competitors/other franchisees, and natural/political boundaries.
Exclusivity
Exclusive — franchisor will not establish or license another franchise in Territory during franchise term as long as franchisee is in compliance. However, franchisor retains broad reserved rights: operate under different names/marks outside territory regardless of proximity; operate other businesses with similar services under different marks inside territory; acquire competing businesses (may rebrand existing operations in territory); create/distribute advertising anywhere including within territory.
Performance Variance Warning
Wide performance variance: top franchisee at $5.19M while median is $663K and bottom at $155K. Only 40% exceed the average. Affiliate P&L (47% gross margin, 22.6% net) is from a mature 2-territory business not representative of a new single-territory franchise.
A deeper look at the specific advantages and risks of this franchise, based on FDD analysis.
Non-medical home care franchise specializing in caregiving services, staffing to SNFs and RCFEs, respite care, and senior living referrals. 27 territories (24 franchised + 2 company-owned) across California and Nevada. Tiered IFF from $60K (1 territory) to $185K (5 territories). Strong Item 19: affiliate-owned P&L shows $2M gross revenue with 47% gross margin, and franchisee averages show $1.27M avg gross revenue (2024, 20 reporting units).
Founded
2014
Employees
10-50
Headquarters
Encino, CA
Training
44 hours (40 classroom + 4 OJT)
Belina Calderon-Nernberg
CEO (since 2014)
Kevin Tagarao
Chief Operating Officer (since 2016)
Randolph Clarito
SVP Franchise Growth & Strategy (since 2020)
Cecilia Mumar
Business Operations Coach (since 2025)
Caring Senior Service
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