INDUSTRY BENCHMARK · 29 SYSTEMS · FISCAL 2023–2025
Are senior care franchises a good investment?
Across 28 senior care franchise systems, the median system's exit rate in its latest fiscal year was 4.1%, and its opening rate 23.9%. Pooled across systems, with no system counting for more than 20% of the weight, the exit rate was 5.4%. Median franchise fee: $54K; median royalty: 6.0%; median total investment: $100K–$181K.
There is no official “senior care franchise failure rate.” What franchisors must disclose, in the Item 20 outlet tables of the FDD, is how many franchised outlets were terminated, not renewed, or “ceased operations — other reasons” each year. The exit rate here is that count divided by franchised outlets open at the start of a single fiscal year. It counts exits for any reason (some are retirements, sales, relocations or non-renewals) and misses struggling units that were sold as transfers.
4.1%
28 systems · latest fiscal year each
5.4%
raw totals: 223 exits / 4,158 at start
23.9%
734 outlets opened in total
29
FDD filed within 24 months
4,658
at latest fiscal year end
$54K
FDD Item 5
6.0%
FDD Item 6
$100K–$181K
FDD Item 7
25/29
systems disclosing an FPR
SOURCE: FDD ITEM 20 OUTLET TABLES FILED WITH STATE REGULATORS (MINNESOTA CARDS) · 29 SYSTEMS · 29 FILINGS · FISCAL 2023–2025
| Signal | Brand | Verdict |
|---|---|---|
| STRONGEST RECORD | CARING TRANSITIONS | Strong |
| STRONGEST RECORD | ALWAYS BEST CARE SENIOR SERVICES | Strong |
| STRONGEST RECORD | Amada Senior Care | Strong |
| WEAKEST FILED RECORD | Interim Healthcare | Weaker |
VERDICTS FROM EACH BRAND'S OWN FDD ITEM 20 FILING · METHODOLOGY
Senior Care franchise questions, answered from the filings
How many senior care franchised outlets leave their systems each year?
There is no official failure rate. FDD Item 20 tables report how many franchised outlets were terminated, not renewed, or "ceased operations — other reasons" each year. Across 28 senior care systems, the median system's exit rate in its latest fiscal year (fiscal 2023–2025) was 4.1%; pooled across systems, with no system counting for more than 20% of the weight, it was 5.4%. Not every exit is a failure: some are retirements or sales.
How much does a senior care franchise cost?
Across the latest FDD filings of 29 senior care systems, the median initial franchise fee is $54K (Item 5) and the median total investment range is $100K–$181K (Item 7).
What royalty do senior care franchises charge?
The median ongoing royalty across 29 senior care franchise systems is 6.0% of gross sales, per Item 6 of their latest FDD filings.
Are senior care franchises growing or shrinking?
In each system's latest Item 20 fiscal year (fiscal 2023–2025), the median senior care system opened new franchised outlets at 23.9% of its starting base and lost 4.1% to exits. For the median system, openings outpaced exits.
What is the healthiest senior care franchise?
Of the senior care systems rated from their FDD Item 20 tables, CARING TRANSITIONS has the strongest record (verdict: Strong). A verdict describes the filed record, not a recommendation to buy.
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