TOUCHING HEARTS

Item 7 lays out the startup math: total investment $84,600-$147,200, driven by a hefty $49,500 franchise fee plus buildout, training, and working capital. Ongoing fees hit 6% of revenue as royalty, up to 2% brand fund (not yet collected), and a flat $200 monthly tech fee. Item 19 financials shine with average gross revenue of $1,113,359 and median $935,595 across comparable units, suggesting solid top-line potential in a recession-resistant niche targeting seniors and disabled clients. But subtract those fees, and profitability hinges on scaling to that median or higher—many units likely clear six figures in owner benefit if expenses stay lean.

The system's 65 locations held steady from 2023 to 2024 (+0% growth), with 15 projected new units and 4 transfers signaling modest activity but no boom. Four SBA loans averaging $147,500 come with a 25% default rate, flagging higher financing risk compared to cleaner systems—lenders see volatility here. For buyers eyeing senior care, Touching Hearts delivers proven revenue disclosure and a lower entry barrier than medical-heavy rivals, but stagnant expansion and loan defaults mean vetting local markets and ops support closely to hit those Item 19 averages.