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 · FDD 2025
PE-backed system (Apax Partners / Authority Brands) with exceptionally detailed Item 19 disclosure — revenue by tenure, by tier, by hours of care, plus direct caregiver cost data. Graduated brand fund (2% to 0.5%) rewards scale. Mature franchisees (3+ years) average nearly $3M. Sister brand synergies across 14 Authority Brands service companies.
Non-Medical Home Care, Companionship Care, Personal Care, Complex/Nursing Care
Homewatch CareGivers is a strong franchise opportunity with 224 US outlets and $728K median revenue across 19% of franchisees meeting the average. Revenue data is transparent, though no P&L is disclosed.
Wide performance gap: median is $728K but average is $1.4M. A few top performers inflate the average — plan for the median, not the mean
Steady growth from 222 to 224 outlets — stable expansion without overextension
Zero franchisee exits recently — nobody is walking away, which is a strong positive signal
Homewatch CareGivers is a PE-backed (Apax Partners / Authority Brands) home care franchise with 224 territories and 29 years of franchising history. The FDD is one of the most transparent in home care — disclosing revenue by tenure, by revenue tier, by hours of care, AND direct caregiver costs (avg 50%). Mature franchisees (3+ years) average nearly $3M with $1.54M median. Systemwide sales grew 45% over 3 years to $277M. The $50K franchise fee and $122K-$178K total investment are moderate, though the franchisor recommends $75K-$100K additional capital. Key differentiators: graduated brand fund (2% drops to 0.5% at scale), PE financial backing with no condition flags, and strong transfer market (22 in 2024). Key risks: mandatory minimum performance requirements ($55K/month by year 5+), extremely broad non-compete, high fixed tech costs ($1,025+/month), and slow early-stage ramp ($118K avg in years 1-2). Best suited for operators with adequate capital who can weather the ramp period and reach mature performance levels.
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 $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 $163K/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 industry benchmark margins. The highlighted row is closest to the median revenue ($728K).
| Revenue | Gross Profit | Est. Net | Owner Take-Home |
|---|---|---|---|
| $250K | $105K | $38K | $88K |
| $500K | $210K | $75K | $125K |
| $750KMEDIAN | $315K | $113K | $163K |
| $1.0M | $420K | $150K | $200K |
| $1.5M | $630K | $225K | $275K |
| $2.0M | $840K | $300K | $350K |
| $3.0M | $1.3M | $450K | $500K |
Gross margin: 42% | Est. overhead: 20% | Franchise fees: 7% | 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 you need to write checks for before earning your first dollar.
Does not include rent, insurance, payroll, or caregiver wages. Franchisor recommends $75K-$100K additional capital beyond stated investment range.
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
Transfers suggest a liquid resale market — good for exit planning
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
Moderate complexity — manageable for most operators with proper training. The biggest challenge area is hiring (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 | $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.
Overview, fees, territory, training, and raw data tables
Legal Entity
Homewatch CareGivers Franchising SPE LLC
State of Organization
Delaware
Headquarters
7120 Samuel Morse Drive, Suite 300, Columbia, Maryland 21046
Business Model
Office-based. Must maintain approved office location within territory. Protected territory based on 35,000-38,000 seniors.
Parent Company
AB Assetco LLC -> AB Issuer LLC -> AB SPE Guarantor LLC -> Authority Brands, Inc. (formerly Villa BidCo Inc.)
Franchise Fee
$50,000 base (for territory with 35,000-38,000 seniors). Additional Seniors Fee: $1.85/senior above 38,000. Discounts: Existing franchisee 30% off additional territories. Affiliate $15,000 for first 2 territories. VetFran 30% off. Active duty 30% off. Diversity $5,000 off (minority/women/LGBTQ+). First Responder $5,000 off.
Total Investment
$121,640 – $177,830
Royalty
5% of Gross Revenue or Minimum Royalty, whichever is greater
Investment Notes: Includes $54,330 paid to franchisor. Franchisor strongly recommends additional $75,000-$100,000 to invest in year 1.
Technology Fee: $175/month Technology Fee + $445/month minimum Care+ Software + $55-$95/month Homewatch Connect + $2.75/month/employee Academy
data — Revenue data for 105 franchisees operating 196 territories reporting full year 2024. Segmented by years in business (per-territory and per-franchisee), by mature franchisee revenue tier, by hours of care, and by direct caregiver costs. Systemwide sales includes all 224 territories.
PROCEED WITH DUE DILIGENCE — strong unit economics and PE backing, but minimum performance requirements demand careful market analysis
Situation
Homewatch CareGivers offers PE-backed financial stability (Authority Brands / Apax Partners), one of the most detailed Item 19 disclosures in home care, and a mature system averaging nearly $3M per franchisee (3+ years). Systemwide sales grew 45% over 3 years. The graduated brand fund and generous discount structure improve franchisee economics. 29-year franchise history with minimal litigation.
Complication
Minimum performance requirements ($15K/month by month 7, escalating to $55K/month by month 61+) create real termination risk. Early-stage revenue is modest ($118K avg in years 1-2). Total true investment with recommended additional capital is $197K-$278K. Non-compete is extremely broad. Tech/software costs add $1,025+/month in fixed overhead.
Upgrade Trigger
Consistent system growth (250+ territories), relaxation of minimum performance requirements, or reduction in mandatory tech fees. Strong resale market development (22 transfers in 2024 is encouraging).
Downgrade Trigger
System contraction (as seen in 2023: -9 territories), increase in minimum performance thresholds, or material litigation. Loss of PE backing or change in ownership structure.
Track territory count (watch for contraction like 2023). Monitor minimum performance requirement enforcement. Compare systemwide sales growth rate. Review transfer volume as indicator of resale market health. Watch tech/software fee increases.
Litigation Summary
1 concluded case (breach of FA — HWCG prevailed) and 1 pending collections action. Minimal litigation for a system of this size and age.
Cost to launch
Does not include rent, insurance, payroll, or caregiver wages. Franchisor recommends $75K-$100K additional capital beyond stated investment range.
What franchisees earn
Avg Revenue
$1,367,155 per territory (196 territories)
Median Revenue
$728,401 per territory
Direct caregiver costs: avg 50% of gross revenue (median 51%). No other cost or net profit data disclosed. At 50% caregiver cost and industry-standard 10-15% net margin, mature median ($1.54M) implies ~$154K-$231K owner income. Early-stage (1-2yr) median of $78K/territory is well below breakeven.
Term
10 years (one 10-year renewal, 20-year max)
Renewal
$5,000
Non-Compete
2 years post-term, Territory + 40 miles + all served zip codes + other HCG territories + 10 miles
Owner-Operator
Required. Key Person must own 5%+ equity, complete training, work on premises.
Disputes
Arbitration in Columbia, Maryland. Maryland law applies.
Financing
No financing offered by franchisor.
Territory
Protected territory based on 35,000-38,000 seniors (65+). Defined by geographic area. Additional Seniors Fee of $1.85/senior applies above 38,000 threshold.
Exclusivity
Protected during term, contingent on compliance and minimum performance requirements. NOT exclusive — franchisor retains broad rights: operate outside territory, under other marks, acquire/merge with competitors in territory, use internet. May face competition from other franchisees, company outlets, or competitive brands.
vs. BrightStar
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.
vs. HomeInstead
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.
vs. RightAtHome
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.
vs. AssistingHands
Assisting Hands: 207 outlets, $2.32M avg (includes multi-business), graduated royalty 4-5%. Homewatch has flat 5% royalty but graduated brand fund and PE backing. AH has state financial condition flag; Homewatch does not. Homewatch provides more detailed Item 19 with mature breakouts and cost data.
Performance Variance Warning
Wide revenue variance: $31,327 to $29.76M per territory. Only 19% of territories met the $1.37M average. Early-stage franchisees (1-2 years) average only $118K/territory. Mature franchisees (3+ years) are the relevant comparison at $2.98M avg / $1.54M median. Multi-territory operators significantly skew system averages.
A deeper look at the specific advantages and risks of this franchise, based on FDD analysis.
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.
Founded
1996
Employees
50-200
Headquarters
Columbia, MD
Leanne Stapf
CEO (since Dec 2022). Also EVP Indoor Brands of Authority Brands, Inc.
Todd Houghton
President (since Nov 2022). Formerly VP Operations at BrightStar Care.
ShihFang "Laurel" Graham
VP Products (since July 2023)
Curtis Wiederin
SVP Growth & Operations (since Jan 2025). Formerly VP Brand Standards at BrightStar Care.
Nicole Brackett
Director Care Delivery & Quality (since June 2024)
Craig Donaldson
CEO of Authority Brands, Inc. (since Aug 2022)
Joseph Troy
Acting CFO (since March 2025). Also Operating Partner at Apax Partners.
Caring Senior Service
Home Instead
The world's largest non-medical home care franchise — 1,243 global locations, $2.6M average revenue, 30 years of franchising, backed by Honor Technology's Care Platform
1Heart Caregiver Services
Non-medical home care franchise with $2M affiliate P&L disclosure, tiered pricing from $60K, 47% gross margin, and strong California market presence
Assisting Hands Home Care
Non-medical & medical home care franchise — 207 outlets, graduated royalty (4-5%), $55K franchise fee, Area Representative support model
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