How Much Does an Interim HealthCare Franchise Owner Make?

It reports Gross Revenue, not owner earnings. For 2025, Item 19 includes 168 Part 1 territories operated by 98 franchise owners and separately reports 22 Hospice territories. The Part 1 data cover home healthcare, personalized care, and supplemental staffing sales while excluding Hospice Sales. Item 19 explicitly states that operating expenses and franchisor fees have not been deducted.

Source: 2026 Interim HealthCare FDD, Item 19, pp. 51–62. Hospice is an add-on service line with different licensing, staffing, payor, investment, and royalty economics; its sales are not blended into the Primary Services earnings estimate.

The model applies a transparent revenue and margin sensitivity to the FDD’s single-territory median. Conservative, Base, and Upside revenue equal 80%, 100%, and 120% of $2,158,167. The central operating margin starts with Addus HomeCare Corporation’s 2025 personal-care segment operating margin of 19.0%, then deducts a modeled 7.5 percentage-point franchise fee and advertising burden. The scenarios use that adjusted margin minus 3 points, unchanged, and plus 3 points.

Estimated pre-tax owner earnings

Cash available after normal unit-level operating expenses and modeled recurring franchise fees, before personal income taxes and financing principal payments.

Included

Direct care costs and local administrative expenses embedded in the operating proxy; royalty, national marketing, local advertising, technology, and the annual regulatory-resource fee.

Excluded

Interest, depreciation, capital expenditures, debt principal, personal income taxes, and contingent conference or non-compliance charges.

Manager treatment

The Addus segment proxy includes local administrative salaries and supervisory costs, so the residual is treated as a manager-run equivalent.

• Revenue spread: 80%, 100%, and 120% of the official 2025 single-territory median. This spread is analytical, not FDD-reported.
• Royalty assumption: 5.5% is used because the 2026 FDD applies that rate to staffing, private-pay, commercial-insurance, and most other non-Medicare sales. Actual blended royalty can be lower when eligible sales fall under the 3.25% or 4.5% tiers.
• Margin sensitivity: plus or minus 3 percentage points around the adjusted benchmark. This is an editorial stress test, not a probability forecast.
• Fixed fees: $5,820 annual technology fee and $1,000 annual Polsinelli Online Solutions for Homecare fee are deducted after the percentage margin.
• Required operating software: EMR and local information-technology costs are assumed to be embedded in the external segment proxy; actual approved-vendor pricing can move results above or below the scenarios.

Active operation can raise the owner’s total economic benefit, but the added amount compensates labor rather than creating passive profit. Item 15 requires the majority owner to be personally engaged full time unless Interim HealthCare Inc. gives written consent. With consent, the franchisee must employ a full-time manager. Using the May 2025 BLS median hourly wage of $59.55 for Medical and Health Services Managers, annualized at 2,080 hours, adds approximately $123,864 of labor value when the owner replaces a paid manager.

Labor economics and service mix are the largest operating variables. The 2022 Economic Census home-health table reports $55.5 billion of annual payroll against $114.2 billion of revenue for employer establishments in NAICS 621610 Home Health Care Services, a payroll-to-revenue ratio of about 48.6% before employee benefits and other expenses. A small change in billable rates, caregiver wages, overtime, utilization, or unfilled shifts can therefore move the residual materially.

• Payor and service mix: Private pay, staffing, Medicaid, Medicare, Medicare Advantage, palliative care, certified home health, and Hospice have different reimbursement and royalty economics.
• Territory maturity: Item 19 shows materially different 2025 sales by time in system. The model uses a mature-system single-territory median, not a startup-year result.
• Caregiver supply: Recruitment, wage inflation, overtime, scheduling efficiency, workers’ compensation, and employee benefits affect direct service cost.
• Administrative structure: A full-time owner, hired manager, registered-nurse requirement, clinical director, or additional office changes overhead.
• Accounts receivable: The FDD notes that staffing customers may pay in 45 to 60 days, while Medicare certification can create additional working-capital demands.
• Benchmark mismatch: Addus is a large company-operated platform. Its segment data exclude unallocated corporate overhead, depreciation, interest, and taxes, while a franchise has its own local professional costs and franchisor obligations.
• Financing: The earnings range is before loan principal and interest. Item 10 states that Interim HealthCare Inc. does not offer or guarantee financing.

Verify the sales cohort, the local cost structure, and the owner-role assumption in writing. The FTC consumer guide to buying a franchise advises buyers to examine the source, limitations, population, and assumptions behind Item 19 and to request written substantiation. For this system, the most useful franchisee interviews should focus on mature single-territory operators with a comparable service mix and payor profile.

• Request Item 19 written substantiation and reconcile the 2025 single-unit cohort to the territory and service lines being offered.
• Ask current and former franchisees for normalized profit-and-loss statements separating caregiver wages, payroll burden, office payroll, insurance, bad debt, rent, software, marketing, and franchisor fees.
• Confirm the expected blended royalty rate from the proposed mix of private pay, staffing, Medicare, Medicaid, Medicare Advantage, and palliative-care sales.
• Determine whether the owner will work full time, whether written consent for manager-run operation is available, and the fully burdened local manager cost.
• Separate Primary Services, Certified Home Health, and Hospice projections; do not apply one service line’s revenue or margin to another.
• Model interest and principal separately using the buyer’s actual financing proposal, then retain a working-capital reserve for payroll and receivables timing.
• Review Item 20 contacts, including former owners, and ask why territories transferred, closed, ceased operations, or were reacquired.

The strongest defensible range is approximately $140,000 to $369,000 in estimated annual pre-tax owner earnings for one mature, manager-run Primary Services territory, with a base scenario near $242,000. It is scenario-based, not official. A full-time owner who replaces a paid health-services manager may receive an estimated total owner-operator benefit of roughly $264,000 to $493,000, but about $124,000 of that amount represents labor value rather than passive business profit.

The most important earnings driver is the spread between reimbursement and labor cost across the territory’s service and payor mix. The largest unresolved uncertainty is that Interim HealthCare Item 19 does not disclose unit-level expenses or profit, while the operating margin benchmark comes from a large company-operated platform. A buyer should therefore verify Item 19 substantiation, full recurring fee treatment, normalized local payroll and overhead, and actual owner compensation with comparable current and former franchisees before using this range in a financing or acquisition decision.