Homewatch CareGivers franchise unit economics
Homewatch CareGivers franchisees run an in-home care agency billing caregiver hours for personal care, companion care and chronic condition support. Across 214 territories held by 112 franchisees the average territory billed $1,360,485 with a median of $665,688, and system-wide sales reached $297.9 million. Direct caregiver cost ran 48% of revenue on average.
- Primary source
- Homewatch CareGivers Franchising SPE LLC, 2026 Franchise Disclosure Document
- Items read
- Items 5 and 6 for fees; Item 19 for sales and any profit figure; Item 20 for the location count
- Population
- 214 of 260 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.
The best fifth of Homewatch owners spend 36% of revenue on caregiver wages and wages tax. The worst fifth spend 59%. On an average territory that 23-point gap is $312,912 a year, almost certainly more than the whole profit of the business. Same brand, same service, same national wage market, and the single largest cost line varies by nearly two thirds.
- Caregiver cost runs 36% of revenue in the best fifth and 59% in the worst. $312,912 a year of difference on an average territory. The average is 48%, the median 49%.
- One point of caregiver cost is worth $13,605 a year. On an average territory. On the median territory it is $6,657.
- The average territory bills $1,360,485 and the median bills $665,688. The average is more than double the median, because one territory bills $33,373,300.
- A territory takes four years to clear $700,000. $228,407 in years one to two, $704,103 in years three to four, $1,576,768 past four.
- System growth halved last year, from 14% to 7%. $297.9 million of system-wide sales, and ten franchisees closed during 2025.
How much does a Homewatch CareGivers franchise make?
The average Homewatch CareGivers unit reported $1,360,485 of revenue in the 2026 FDD, and the median reported $665,688. 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 7% 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.
Caregiver cost
The line that decides the year.
| Group | Caregiver cost | On the average territory | On the median territory |
|---|---|---|---|
| Best fifth | 36% | $489,775 | $239,648 |
| Average | 48% | $653,033 | $319,530 |
| Median | 49% | $666,638 | $326,187 |
| Worst fifth | 59% | $802,686 | $392,756 |
The brand reported these percentages. They cover 94 owners running 201 territories, who use the brand's benchmarking service, filed full 2025 accounts and had been in business at least two years.
Twenty-three points is more than most owners earn. $312,912 a year on an average territory, $153,108 on a median one. Home care agencies of this size rarely clear that in profit. So the difference between running at 36% and running at 59% is the difference between a business worth owning and a full-time job that pays you last.
Overtime is inside this number and it is the usual culprit. The definition covers wages including overtime plus payroll taxes. A scheduling pattern that pushes caregivers past forty hours converts straight-time hours into time and a half on the same billed revenue, and it shows up here. One point of caregiver cost is $13,605 a year at the average territory.
The median sits at 49%, a point above the average. That means the distribution is slightly weighted toward the worse end: more owners above the mean than below it. If you are at 52% you are worse than half your peer group, and the route to 48% is thirteen thousand dollars a point.
What the territories bill.
| Per territory | Per franchisee | |
|---|---|---|
| Average | $1,360,485 | $2,599,498 |
| Median | $665,688 | $1,155,612 |
| Highest | $33,373,300 | $66,746,600 |
| Lowest | $26,422 | $26,422 |
| Above average | 47 (22%) | 32 (29%) |
As the brand reported it.
Only 22% of territories reach the average. $1,360,485 against a median of $665,688. The average is more than double the middle. One territory billing $33,373,300 is doing that on its own. Compare against $665,688 and against others open the same number of years.
The average franchisee runs 1.9 territories. 214 across 112 owners, rising to 2.15 among those past four years. So the typical owner here holds two territories and bills $2,599,498 across them, with a median of $1,155,612.
Top performers
What separates the top Homewatch CareGivers performers
Homewatch CareGivers splits its locations into groups instead of publishing one average. The best group averaged $33,373,300 a year. The worst averaged $26,422. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $665,688. The average was $1,360,485. More than half the system is below the number the brand quotes.
Decided before you open
- Trade area and site.A 1263.1× 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 $142,890 to $194,080, a 1.4× 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
- Wages, the dominant line.Wages take 48.0% of sales. Staff productivity, scheduling against demand hour by hour, and the balance of base pay to commission are where this is won.
- 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.
- Fees, and where the minimum bites.Fees run about 7.0% 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.214 of 260 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.
Revenue by year
Revenue by years in business.
| Years | Franchisees | Territories | Per franchisee | Average per territory | Median per territory | Lowest |
|---|---|---|---|---|---|---|
| 1 to 2 | 16 | 18 | 1.1 | $228,407 | $182,977 | $26,422 |
| 2 to 3 | 4 | 7 | 1.8 | $301,902 | $317,280 | $95,843 |
| 3 to 4 | 11 | 15 | 1.4 | $704,103 | $617,699 | $288,016 |
| Over 4 | 81 | 174 | 2.1 | $1,576,768 | $945,317 | $119,023 |
Franchisee counts, territory counts and revenue figures as the brand reported it.
Year three is where the revenue arrives. $301,902 a territory at two to three years, rising to $704,103 at three to four years. That is the largest single jump in the table. It lines up with how long it takes to build a referral network with hospital discharge planners and case managers.
Past four years the median territory bills $945,317. One territory selling $33 million lifts that group's average of $1,576,768. Half the group sells less than $945,317. A mature Homewatch territory is roughly a million-dollar business, and its owner probably runs two of them.
The lowest territory past four years bills $119,023. One territory in the same group sells $33,373,300. Owners differ more within the mature group than the groups differ from each other.
System growth is slowing.
| Year | System-wide sales | Growth |
|---|---|---|
| 2021 | $191,059,146 | n/a |
| 2022 | $211,550,548 | 11% |
| 2023 | $244,258,782 | 15% |
| 2024 | $277,310,987 | 14% |
| 2025 | $297,885,057 | 7% |
As the brand reported it, covering all franchisees operating for any part of each year.
Growth halved while the territory count rose 13%. 231 territories to 260, and 7% more revenue. The same-franchisee figure is also 7%, so this is existing agencies growing more slowly. Against home health service prices rising 10.7% over the same period, 7% of revenue growth means volume is roughly flat.
Fees and the network
The brand fund gets cheaper as you grow.
| Sales | Royalty at 5% | Brand fund | Brand fund rate | Total | Share |
|---|---|---|---|---|---|
| $665,688 (median territory) | $33,284 | $12,485 | 1.88% | $45,769 | 6.88% |
| $1,360,485 (average territory) | $68,024 | $21,105 | 1.55% | $89,129 | 6.55% |
| $3,387,131 (average mature franchisee) | $169,357 | $34,436 | 1.02% | $203,793 | 6.02% |
Ours, applying the disclosed rates.
The brand fund is a tapered fee, which is unusual and worth planning around. It resets to 2% every January and steps down as the year's cumulative revenue passes $500,000, $1 million and $2 million. So your marketing contribution is front-loaded into the first months of each year and cheapest in December. On a mature franchisee the effective rate is 1.02% against 1.88% on a median territory.
The minimum royalty schedule.
| Months open | Minimum | Per year | Annual revenue where 5% equals it |
|---|---|---|---|
| 0 to 6 | Zero | n/a | n/a |
| 7 to 12 | $500 a month | $6,000 | $120,000 |
| 13 to 24 | $1,000 a month | $12,000 | $240,000 |
| 25 to 36 | $1,250 a month | $15,000 | $300,000 |
| 37 to 48 | $1,500 a month | $18,000 | $360,000 |
| 49 to 60 | $2,000 a month | $24,000 | $480,000 |
| 61 and after | $2,500 a month | $30,000 | $600,000 |
Minimum royalty schedule as the brand reported it.
The thresholds track the build-up closely. $300,000 at months 25 to 36 against a two-to-three-year median of $317,280; $600,000 from month 61 against a mature median of $945,317. Set against Amada's equivalent schedule, which reaches $960,000 by year six, this one is materially easier to clear.
The network of locations. (Item 20)
| Year | Start | End | Net change |
|---|---|---|---|
| 2023 | 222 | 213 | −9 |
| 2024 | 213 | 231 | +18 |
| 2025 | 231 | 260 | +29 |
As the brand reported it.
The network shrank in 2023 and has added 47 territories since. 222 to 213 to 260. Ten franchisees closed last year against 36 opening, so customers lost is running alongside growth. For an existing owner the practical question is whether the 7% revenue growth holds as the newer territories mature.
Questions we get asked
What should my caregiver cost be?
48% of sales is the average and 49% the median, across 94 franchisees running 201 territories. The best fifth run at 36% and the worst fifth at 59%. On an average territory of $1,360,485, that range is $312,912 a year. One point is worth $13,605. The definition covers wages including overtime plus payroll taxes, so benefits and workers' compensation sit on top of whatever number you are comparing.
What should a territory be billing?
The median territory bills $665,688 and the average $1,360,485, with only 22% of territories reaching the average. By years open: $228,407 in years one to two, $301,902 in years two to three, $704,103 in years three to four. $1,576,768 past four years, where half sell less than $945,317. Year three is the big step, roughly doubling revenue.
How does the brand fund actually work?
It tapers through each calendar year and resets every January. 2% on your first $500,000 of revenue, 1.5% on the next $500,000, 1% on the next $1,000,000 and 0.5% above $2,000,000. On a median territory that averages 1.88% for the year; on a mature franchisee billing $3,387,131 it averages 1.02%. Your cash outflow is heaviest in the first months of each year.
How many territories do owners run?
1.9 on average, rising to 2.1 among franchisees past four years. 214 territories across 112 owners. The average owner bills $2,599,498 with a median of $1,155,612. Since the royalty and brand fund both taper with scale and the office overhead range, a second territory improves the economics of the first one.
Who does bookkeeping for a Homewatch CareGivers franchise?
Caregiver cost is the number the franchisor benchmarks you on. Record wages and payroll taxes exactly as the brand defines them, with overtime on its own line. That is where the owners at 36% differ from the 59% ones. Sales includes amounts billed to insurance and government programs and is measured regardless of collection. So royalty is owed on claims that later get denied. Track money owed separately for each payer. The tapering brand fund means your fee owed rate changes several times a year. 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.
Questions worth putting to Homewatch CareGivers
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 Homewatch CareGivers locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
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