Verified — real FDD extraction
SBA-eligible · directory code S0817 since 2017
HOMEWATCH CAREGIVERS
Other · independent · est. —
Homewatch CareGivers is an in-home care franchise providing non-medical personal care, companionship, and support services for seniors and others needing assistance at home. A franchisee operates an agency office, recruiting caregivers and coordinating care plans and schedules for clients in a protected territory.
HOMEWATCH CAREGIVERS net unit count grew +22.1% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & strong
Distress
Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. The standout in the record: the system is growing.
Exit rate · latest year
5.6%
fiscal 2025, per Item 20
Cost to open
$143K–$194K
Item 7 total investment range
SBA loan defaults
24.2%
vs 14.8% avg across rated brands
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 13 of 231 franchised outlets left the system — a 5.6% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 222 | 213 | 231 |
| Opened | 16 | 25 | 42 |
| Transfers | 12 | 22 | 7 |
| Terminations | 10 | 3 | 10 |
| Non-renewals | 2 | 2 | 1 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 13 | 2 | 2 |
| Outlets at end | 213 | 231 | 260 |
| Net change | -9 | +18 | +29 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 78 SBA-backed loans to HOMEWATCH CAREGIVERS franchisees since 1997. Of the 33 that have resolved, 24.2% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.
24.2%
8 of 33 resolved defaulted
83.2%
avg. charged-off $ ÷ approved $
20.2%
default rate × loss severity
$406,870
what recent franchisees borrowed
44 mo
approval → charge-off, defaulted loans
18 vs 10
distinct banks still lending
Charge-off rate by loan approval year (%)
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO HOMEWATCH CAREGIVERS BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
A typical HOMEWATCH CAREGIVERS buyer since 2020 borrowed $407K through SBA — about $62K a year in debt service. Against the brand's own disclosed median unit revenue of $666K, that is 9.3% of every dollar the store takes in — before rent, payroll, food, or royalty.
Who finances it
United Midwest Savings Bank National Association
24.4% of this brand's loans
That lender charges off 35.0% of its loans to other franchise brands, vs 14.8% nationally.
Who buys it
73.4%
first-time franchise owners
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.
Does experience help here?
Not enough resolved loans to split
Computed from 78 SBA 7(a)/504 loans to HOMEWATCH CAREGIVERS franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $50K franchise fee (Item 5) and a total investment of $143K–$194K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$143K–$194K
all-in investment range
Franchise fee (Item 5)
$50K
upfront, one-time
Royalty (Item 6)
5%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$50K
5% of sales, before profit
Over a 10-yr term
$500K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for HOMEWATCH CAREGIVERS with an independent CPALabor record
US Dept. of Labor enforcement · franchisee-level · FY2005–present
Federal investigators have concluded 6 wage cases against operators of this system, recovering $83K in back wages for 114 workers. Some of these cases are recent, not ancient history. These cases name franchisee-owned locations, not the franchisor itself.
Concluded cases
6
Back wages owed
$83K
Employees affected
114
Since 2020
1
Read this carefully. The employers in these cases are individual HOMEWATCH CAREGIVERS franchisees — separately owned businesses operating under the brand name — not HOMEWATCH CAREGIVERS itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2024.
Modeled risk
FDD Risk Score · modeled from the public record
Modeled from the public record, this brand sits mid-pack: riskier than 72% of systems we score.
Risk percentile
72 / 100
Loan-corroborated
Modeled SBA charge-off
15.9%
Observed SBA charge-off
24.2%
Top drivers: Share financed by high-loss lenders (raises) · Investment ceiling (log) (raises) · System size (log units) (lowers) · Net unit growth (lowers). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for HOMEWATCH CAREGIVERS. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing HOMEWATCH CAREGIVERS's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →HOMEWATCH CAREGIVERS franchise questions, answered from the filings
What percentage of HOMEWATCH CAREGIVERS franchises closed last year?
In HOMEWATCH CAREGIVERS's latest FDD Item 20 (fiscal 2025), 13 of 231 franchised outlets left the system — an annualized exit rate of 5.6%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a HOMEWATCH CAREGIVERS franchise cost?
Per HOMEWATCH CAREGIVERS's 2026 FDD, buying in requires an initial franchise fee of $50K (Item 5) and a total initial investment of $143K–$194K (Item 7).
What royalty does HOMEWATCH CAREGIVERS charge?
HOMEWATCH CAREGIVERS charges an ongoing royalty of 5.0% of gross sales, per Item 6 of its 2026 FDD.
Does HOMEWATCH CAREGIVERS disclose earnings (Item 19)?
Yes — HOMEWATCH CAREGIVERS makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $666K. Read it closely: franchisors choose which units and which metrics to include.
How often do SBA loans for HOMEWATCH CAREGIVERS franchises default?
Across 78 SBA-backed loans to HOMEWATCH CAREGIVERS franchisees since 1997, 8 of the 33 that have resolved were charged off — a 24.2% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.