Amada Senior Care franchise unit economics
Amada Senior Care franchisees run an in-home senior care agency billing caregiver hours, and also place clients into assisted living for a commission. Across 162 outlets open the full year the average was $1,579,524 of gross billings with a median of $1,242,391. Long-term care insurance, the VA and Medicaid together funded 52.2% of the system's $281 million of billings.
- Primary source
- Amada Franchise, Inc., 2026 Franchise Disclosure Document
- Items read
- Items 5 and 6 for fees; Item 7 for cost to open; Item 19 for sales and any profit figure; Item 20 for the location count
- Population
- 162 of 261 locations
- Our calculations
- Marked on the page with an asterisk. Method
- Last reviewed
- 26 September 2026
Disclosure-based. Not a forecast, not an offer to sell a franchise, and not advice.
Somebody other than the client pays for 52.2% of what Amada bills. Long-term care insurance funds 33.0% of the system's $281 million, the VA another 14.8% and Medicaid 4.4%. That is a different business from a private-pay agency: the work of getting paid sits with your office, and the collections cycle.
- Third parties fund 52.2% of system billings. Long-term care insurance 33.0%, the VA 14.8%, Medicaid 4.4%. Private pay is 46.5%.
- The minimum royalty climbs to $4,000 a month by year six. That equals 5% only at $960,000 of annual billings. Below that you pay more than the headline rate.
- The median outlet bills $352,161 in year one and $927,818 by year three. Averages run $480,711 and $1,147,193, so a few strong outlets have them.
- 29 of 193 franchisees closed inside three full calendar years. Ten in year one, eight in year two, eleven in year three.
- The average outlet fell 1.8% last year while the median rose 4.0%. The top of the range came down; the middle improved. 19 outlets closed in 2025 against 7 in 2024.
How much does a Amada Senior Care franchise make?
The average Amada Senior Care unit reported $1,579,524 of revenue in the 2026 FDD, and the median reported $1,242,391. The brand’s disclosure document discloses revenue and not profit, so what an owner keeps depends on the cost structure set out below. Fees come off the top first, at about 6% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Who pays
Where the money comes from.
| Payor | 2023 | 2024 | 2025 | Share in 2025 |
|---|---|---|---|---|
| Private pay | $97,395,736 | $109,222,323 | $130,831,237 | 46.5% |
| Long-term care insurance | $64,697,729 | $81,535,275 | $92,730,241 | 33.0% |
| Veterans Affairs | $22,980,428 | $36,685,061 | $41,569,419 | 14.8% |
| Medicaid | $8,425,282 | $10,587,632 | $12,403,248 | 4.4% |
| Placements and other | $977,905 | $1,566,644 | $2,784,101 | 1.0% |
| Staffing | $1,599,162 | $1,025,938 | $738,444 | 0.3% |
| Total | $196,076,242 | $240,622,873 | $281,056,690 | 100% |
As the brand reported it, covering all franchisees.
How we calculated this
163 outlets generated revenue in 2023, 194 in 2024 and 259 in 2025, so the totals reflect a growing network as well as growing outlets.
A third of every dollar arrives from a long-term care insurer. $92,730,241 in 2025. Those claims need policy verification, benefit-period tracking, elimination periods and documentation that matches the carrier's requirements, and they pay on the carrier's timetable. An agency paid by families gets its money faster than one paid by insurers. The sales figure alone does not show that difference.
The VA went from 11.7% of billings to 14.8% in two years. $22,980,428 to $41,569,419, an 81% increase against 34% for private pay. That source of payment is growing fastest in this system. It has its own approval process and its own payment terms. It also concentrates risk: a change in VA community care contracting reaches one dollar in seven.
Private pay slipped from 49.7% to 46.5% of the mix. It is still the largest source and it grew 34% in absolute terms, but the system is becoming more reimbursement-dependent each year. For an owner that shifts the skill the office needs to hire for, from selling to billing.
What the outlets bill.
| 2024 | 2025 | Change | |
|---|---|---|---|
| Outlets reporting | 142 | 162 | +20 |
| Average | $1,607,831 | $1,579,524 | −1.8% |
| Median | $1,194,785 | $1,242,391 | +4.0% |
| Highest | $9,897,870 | $9,321,920 | −5.8% |
| Lowest | $23,289 | $67,820 | +191.2% |
| Above average | 51 (35.9%) | 61 (37.7%) | n/a |
As the brand reported it, covering only outlets open the entire calendar year.
The average and the median moved in opposite directions. Average down 1.8%, median up 4.0%, with the highest outlet down 5.8%. The middle of the system improved while the top came off. That is a healthier shape than the reverse and means the $1,242,391 median is the number to plan against.
Nineteen outlets closed in 2025 against seven in 2024. On a base that grew from 196 to 261 franchised outlets, that is a system opening fast and losing more as it goes. Five of the nineteen had been open under a year.
Top performers
What separates the top Amada Senior Care performers
Amada Senior Care splits its locations into groups instead of publishing one average. The best group averaged $9,321,920 a year. The worst averaged $67,820. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $1,242,391. The average was $1,579,524. More than half the system is below the number the brand quotes.
Decided before you open
- Trade area and site.A 137.5× gap between bands is not an operating gap. Catchment, daytime population and what sits next door set the ceiling before the first customer arrives.
- Territory, and how much of it is real.This model sells from a territory rather than a building. Two owners with the same brand and different ground are running different businesses, and density decides how much driving sits between jobs.
- What you spend to open.Opening costs $121,577 to $438,440, a 3.6× range inside one brand. The high end usually buys more capacity, so the cheapest build is not always the cheapest route to the top band.
Live operating levers
- Billed hours, the operating driver.This model bills on billed hours. The owner pays for every hour worked and bills only the hours a client accepts, so the job is to keep those two close and to protect the gap between the rate charged and the rate paid. It is worth watching every week, because by the time it turns up in a monthly close the quarter is half gone.
- Membership and rebooking.A recurring plan turns a high-fixed-cost business from an appointment book into a subscription, which smooths the utilisation that drives the wage line. Rebooking before the customer leaves is what builds it, not marketing spend afterwards.
- Fees, and where the minimum bites.Fees run about 6.0% of sales. A minimum sits underneath the percentage, so the low-volume location pays the higher effective rate. The brand charges the weakest locations the most. Work out the sales level where the percentage overtakes the minimum and know which side of it you are on, because the answer changes what an extra dollar of sales is worth.
- The first year.This filing shows how a new location builds up, so the ramp can be underwritten from the document rather than assumed. Read two things out of it: the month sales cross the point where costs are covered, and how much cash you fund before that month arrives. Everything before break-even is paid for by you.
Context you underwrite around
- The reporting screen.162 of 261 locations are behind these figures. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, so the numbers describe locations that cleared that screen, not the system as a whole.
- What the disclosure leaves out.Item 19 publishes no profit or cost data for franchised locations. Anything below the sales line has to come from the franchisor or from owners you call.
The first year, month by month
The first three years.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Franchisees | 193 | 160 | 133 |
| Average | $480,711 | $871,992 | $1,147,193 |
| Median | $352,161 | $727,781 | $927,818 |
| Highest | $2,299,903 | $3,952,751 | $4,761,934 |
| Lowest | $1,769 | $25,219 | $126,543 |
| Above average | 72 (37.3%) | 62 (38.8%) | 50 (37.6%) |
As the brand reported it, covering every franchisee open at least one full calendar year since the system began in 2012.
The median more than doubles in year two, then adds a quarter in year three. $352,161 to $727,781 to $927,818. That second year is the largest single move available, and a franchisee who misses it faces a much longer road to the $1,242,391 system median.
29 franchisees closed inside three full calendar years. Against 193 who reached year one, that is roughly one in seven. The closures were range evenly across all three years.
The range inside each year is enormous. Year one runs from $1,769 to $2,299,903. Year three runs from $126,543 to $4,761,934. Two franchisees in the same group can be nearly thirty-eight times apart. Says territory quality and referral relationships matter more here than the calendar does.
Most franchisees run more than one outlet.
| 2024 | 2025 | |
|---|---|---|
| Ownership groups | 103 | 111 |
| Average | $2,218,487 | $2,305,252 |
| Median | $1,710,305 | $1,961,083 |
| Highest | $10,870,701 | $9,321,920 |
| Lowest | $70,821 | $83,997 |
As the brand reported it.
The average owner bills $2,305,252 against $1,579,524 per outlet. That puts roughly one and a half outlets behind the typical ownership group. The median owner billed $1,961,083, up 14.7% on the year while the per-outlet median rose 4.0%. Owners are growing by adding territory faster than their individual outlets are growing.
Fees and the network
The minimum royalty climbs every year.
| Months in operation | Minimum royalty | Per year | Annual billings where 5% equals it |
|---|---|---|---|
| 1 to 2 | Zero | n/a | n/a |
| 3 to 12 | $500 a month | $6,000 | $120,000 |
| 13 to 24 | $1,000 a month | $12,000 | $240,000 |
| 25 to 36 | $1,800 a month | $21,600 | $432,000 |
| 37 to 48 | $2,500 a month | $30,000 | $600,000 |
| 49 to 60 | $3,200 a month | $38,400 | $768,000 |
| 61 and beyond | $4,000 a month | $48,000 | $960,000 |
Minimum royalty schedule as the brand reported it.
From month 61 franchise fees cost $48,000 a year whatever you bill. That is 5% at $960,000 of annual billings. The median outlet bills $1,242,391, so the median mature outlet is above the line, but the year-three median is $927,818, which sits below it. An outlet that stalls anywhere under $960,000 after five years pays an effective royalty above 5% and rising as a share every year it stays there.
The schedule is a growth requirement written as a fee. $120,000 in year one, $960,000 by year six: the thresholds climb roughly eightfold while the median outlet goes from $352,161 to somewhere near $1.2 million. The two tracks are designed to run together, and the cost of falling behind lands on the royalty line.
What else the fees take.
| Fee | Amount |
|---|---|
| Royalty | Greater of 5% of Gross Billings or the minimum above |
| Royalty on National Accounts | 6% of Gross Billings from those accounts |
| Advertising fund | 1% of Gross Billings, which may rise to 2% on 30 days' notice |
| Advertising fund on skilled care | 0.25% of skilled care Gross Billings |
| Technology | $345 to $595 a month depending on software |
| Senior placement | 10% or 15% of the commission received |
As the brand reported it.
Royalty is charged on billings, including the ones that stay unpaid. Gross Billings covers everything billed, including amounts that later prove uncollectible. With 52.2% of system revenue coming from insurers, the VA and Medicaid, a denied claim costs you the service, the wage and the royalty on it.
The network of locations.
| Year | Start | Opened | Terminations | Reacquired | Ceased other | End |
|---|---|---|---|---|---|---|
| 2023 | 160 | 26 | 1 | 0 | 9 | 176 |
| 2024 | 176 | 28 | 1 | 4 | 3 | 196 |
| 2025 | 196 | 83 | 9 | 7 | 1 | 261 |
As the brand reported it.
83 outlets opened in 2025, three times the prior year's rate. The franchised count went from 196 to 261. That pace brings a lot of first-year outlets into the network. The build-up table says a first-year median is $352,161. So expect the system averages to be pulled down for the next two filings regardless of how existing outlets perform.
Terminations and reacquisitions both rose with the opening rate. Nine terminations and seven reacquisitions in 2025, against one and four in 2024. Fast growth and higher members leaving are arriving together, which is the usual pattern and worth watching in the next filing.
Questions we get asked
Who actually pays an Amada agency?
Third-party payors fund 52.2% of system billings (long-term care insurance 33.0%, the VA 14.8% and Medicaid 4.4%) with private pay at 46.5%. The VA share has grown fastest, from 11.7% to 14.8% in two years. That mix means the office needs billing and claims capability, and it puts the collections cycle at the center of your cash planning.
What should I be billing by year three?
The median franchisee bills $352,161 in their first full calendar year, $727,781 in the second and $927,818 in the third. Averages run higher at $480,711, $871,992 and $1,147,193, because a few outlets in each group reach several million. Year two is the big step; the median more than doubles.
When does the minimum royalty start costing me more than 5%?
Whenever your billings fall below the threshold for your stage. The sales target is $120,000 in months 3 to 12, $240,000 in months 13 to 24, $432,000 in months 25 to 36, $600,000 in months 37 to 48, $768,000 in months 49 to 60, and $960,000 from month 61. The year-three median of $927,818 sits just under that last figure. So an outlet that plateaus around its year-three level will be paying above the headline rate from year six onward.
How many franchisees make it?
Of 193 owners who completed a first full year since 2012, ten closed in year one, eight in year two and eleven in year three. That is 29 in total, about one in seven within three years. In the most recent year, 19 outlets closed against seven the year before, while 83 opened. The members leaving range evenly across the first three years.
Who does bookkeeping for an Amada Senior Care franchise?
The who pays the bill, the insurer or the patient is why this brand needs more than a bookkeeper. Long-term care insurance, veterans' benefits and Medicaid all pay at different speeds. Each refuses and appeals claims differently. Track money owed separately for each. Royalty is charged on Gross Billings including amounts that later prove uncollectible, which means write-offs cost you twice and belong on a report someone reads monthly. Senior placement commissions are a separate revenue stream with their own fee treatment. Track how long each payer takes to pay, alongside what you billed them. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
- No profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
- No cost lines. Wages, rent and cost of goods are not broken out, so margin cannot be rebuilt from the document.
Questions worth putting to Amada Senior Care
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- What separates the highest-selling locations from the lowest: trade area, years open, size, or the owner?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Amada Senior Care locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
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