INDUSTRY BENCHMARK · 20 SYSTEMS · FISCAL 2015–2025
Are senior care franchises a good investment?
Across 20 senior care franchise systems (2,907 franchised units), franchisees exited at an annualized rate of 5.6% in their latest FDD Item 20 filings, while new outlets opened at 19.6%. The median buy-in: a $50K franchise fee, 5.5% royalty, and a total investment of $94K–$163K.
People search for a “senior care franchise failure rate,” but no such official number exists. 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. That annualized exit rate is the honest, measurable proxy: it slightly overstates failure (some exits are retirements or sales) and slightly understates distress (struggling units often sell before they close), but unlike survey numbers it comes from legally mandated disclosures.
5.6%
145 exits / 2,573 units at start
19.6%
504 outlets opened
20
verified FDD extractions
2,907
at latest fiscal year end
$50K
FDD Item 5
5.5%
FDD Item 6
$94K–$163K
FDD Item 7
16/20
systems disclosing an FPR
SOURCE: FDD ITEM 20 OUTLET TABLES FILED WITH STATE REGULATORS (MINNESOTA CARDS) · 20 SYSTEMS · 20 FILINGS · FISCAL 2015–2025
| Signal | Brand | Index | Grade |
|---|---|---|---|
| STRONGEST | OASIS SENIOR ADVISORS | Proven & strong | |
| STRONGEST | Amada Senior Care | Proven & strong | |
| STRONGEST | ALWAYS BEST CARE SENIOR SERVICES | Proven & strong | |
| WEAKEST | Home Matters Care Giving (AR) | Too new to judge | |
| WEAKEST | HomeCare Advocacy Network | Too new to judge | |
| WEAKEST | Trua Senior Living Locators | Too new to judge |
HEALTH INDEX: SOURCED 0–100 SCORE FROM EACH BRAND'S OWN FDD ITEM 20 · METHODOLOGY
Senior Care franchise questions, answered from the filings
What percentage of senior care franchises fail?
There is no official failure rate, but FDD Item 20 filings show the honest proxy: across 20 senior care franchise systems, 145 franchised outlets left their systems (terminations, non-renewals, and "ceased operations — other") out of 2,573 open at the start of the year — an annualized exit rate of 5.6% in fiscal 2015–2025. Not every exit is a failure (some are retirements or sales), but it is the measurable floor.
How much does a senior care franchise cost?
Across the latest FDD filings of 20 senior care systems, the median initial franchise fee is $50K (Item 5) and the median total investment range is $94K–$163K (Item 7).
What royalty do senior care franchises charge?
The median ongoing royalty across 20 senior care franchise systems is 5.5% of gross sales, per Item 6 of their latest FDD filings.
Are senior care franchises growing or shrinking?
In the latest Item 20 filings, senior care systems opened new franchised outlets at an annualized rate of 19.6% while franchisees exited at 5.6%. Openings currently outpace exits in this industry.
What is the healthiest senior care franchise?
By the Watch Desk verdict system (computed from FDD Item 20 with an evidence gate), the strongest verified senior care system tracked is OASIS SENIOR ADVISORS.
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