ATC Healthcare Franchise Sales, Costs & Profits (2023)

This article was updated with the 2023 Franchise Disclosure Document

ATC Healthcare is a popular franchise in the healthcare industry: from just over 30 franchises 5 years ago, it has doubled in size and now has more than 60 locations in the US.

So if you’re looking to get into the not-so-crowded healthcare staffing franchise industry, ATC Healthcare is an obvious choice. But what about profits?

With an initial investment of $278,000 yet a yearly revenue of $2,628,000 on average, ATC Healthcare definitely seems like an excellent franchise. Is it really?

In this article we’re looking at ATC Healthcare and its latest Franchise Disclosure Document to find out how much it (really) costs, and how profitable it really is.

Key stats

Franchise fee$50,000
Royalty fee30% to 45% of gross margin
Marketing fee2.0%
Investment (mid-point)$96,000
Average sales$1,869,000
Sales to investment ratio-
Payback period[franchise_value_investment_payback]
Minimum net worth$500,000
Minimum liquid capital$100,000
Source: Franchise Disclosure Document 2022

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About ATC Healthcare

ATC Healthcare is a healthcare staffing company headquartered in Lake Success, New York. It provides staffing services by matching qualified healthcare workers with facilities that need them.

ATC Healthcare was founded in 1985 by brothers David and Stephen Savitsky in New York as a small but nimble healthcare staffing company. Their mission continues today with ATC Health, now a renowned staffing franchise, connecting healthcare facilities and professionals and helping them meet their needs while offering entrepreneurial opportunities to caring partners.

ATC Healthcare works with various partners in the US, ranging from hospitals and residential care programs to large public health departments, public school systems, medical groups and municipal governments.

The ATC Healthcare franchise may be an interesting opportunity for franchisees interested in filling a gap in the on-demand US health staffing industry that is currently projected at $24.1 billion.

The company began franchising in 1996 and currently, it has opened 64 franchises in the US.

ATC Healthcare franchise pros and cons

The Pros

  • Exclusive territory protection: The franchisor offers its franchisees a protected territory to operate their agencies. Under the agreement, the franchisor or its affiliates cannot operate another ATC Healthcare in the specific location.
  • Third-party financing: ATC Healthcare has relationships with third-party partners to provide its franchisees with funding for their startup fee, franchise fee, equipment, inventory, accounts receivable and payroll. Also, it provides them with in-house financing to cover accounts receivable and payroll.
  • Site selection: The franchisor provides its franchisees with site selection guidance to help them identify a suitable business location. Also, it helps them with lease negotiations and site development.
  • Training and ongoing support: ATC Healthcare provides its franchisees with detailed online and classroom training programs to help run their agencies smoothly. It offers them best management practices as well as ongoing education on security & procedures and field operations.
  • Home-based business opportunity: The franchise can be operated from home or a mobile facility. Franchisees can get started quickly and save on ongoing office costs.
  • Marketing and publicity: The brand has established turnkey marketing systems to help franchisees with their advertising and public relations. These include web development, ad templates, SEO, social media and email marketing.

The Cons

  • Not a passive business opportunity: The franchisor does not allow for absentee ownership. Franchisees must be involved in the day-to-day operations and management of their clinics.
  • Not a part-time business: The clinics must be open on a full-time basis as per the business’s official hours.
  • No international presence: The company does not have locations outside the US, which may be a deterrent while marketing abroad.

ATC Healthcare franchise costs

You would have to invest on average $174,000 to open a single-unit ATC Healthcare franchised business, $382,000 to open a multiple-unit ATC Healthcare franchised business, and $26,000 additional for a conversion franchise.

The investment covers all the start-up costs you may need to open an ATC Healthcare franchised business. You must pay the franchisor an initial franchise fee of $50,000 for a single unit and $90,000 – $120,000 for multiple units.

In addition to this franchise fee, the investment also covers:

  • Formulation costs: leasehold improvements, signage, blueprints and plans, security deposits, permits and licences, etc.
  • Equipment: equipment, furnishing and fixtures, computer systems, etc.
  • Initial marketing fees
  • Operating costs: rent, initial inventory, travel and living expenses, insurance, professional fees, online employee search, website design, website maintenance, additional funds for 9 months, etc.

Startup costs (single unit)

Type of ExpenditureAmount
Initial franchise fee$50,000
Formulation costs$1,700 – $10,500
Equipment$4,500 – $10,000
Operating costs$76,700 – $143,700
Total$132,900 – $214,200
Source: Franchise Disclosure Document 2023

Startup costs (multi unit)

Type of ExpenditureAmount
Initial franchise fee$90,000 – $120,000
Formulation costs$1,700 – $27,500
Initial marketing fees$10,000
Equipment$3,500 – $24,000
Operating costs$75,700 – $401,200
Total$180,900 – $582,700
Source: Franchise Disclosure Document 2023

ATC Healthcare franchise fees

The initial franchise fee for a ATC Healthcare franchise is $50,000

In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 30% to 45% of gross margin of revenues, as well as a variable marketing fee of 2.0% of revenues.

ATC Healthcare franchise revenues

On average, an ATC Healthcare franchise makes $2,628,000 in sales per year. This number is the median revenue per franchised business for 41 of the 64 franchised businesses that operated in all of 2022. 

Actually gross revenue varies significantly from $399,000 up to $56,409,000 for the most successful franchise..!

Is ATC Healthcare a good franchise investment?

We estimate that a ATC Healthcare franchised business has a 3-4 years investment payback. In other words, you would repay the initial investment within 3 to 4 years on average by using the profits generated by the business.

This is an excellent and in line with most senior home care franchises.

The reason for such a great payback is the low upfront investment cost relative to the profits of the business. Indeed senior home care businesses require very little costs to start.

Note we assumed a revenue ramp-up as you wouldn’t reach the average revenue per franchise of $2,628,000 on day one.

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Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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