Amada Franchise
Cost, fees, owner earnings, closure rate and litigation for a Amada franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
Amada discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
Gross Billings data for 200 franchised outlets. 2024 median: $1,194,785; average $1,607,831. Top quartile average $3,543,407. Bottom quartile average $347,943. First-year average $562,578.
What a Amada franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $57,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 1% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 6% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $118,190 – $430,050 | Item 7 — franchisor's own low/high estimate |
Royalty 5% or minimum escalating to $4,000/month by month 61+. Ad fund 1%. Multiple additional fees: placements, transfers, territory encroachment.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Amada system size and owner turnover
| Total outlets | 203 |
| Ceased operations | 3 |
| Terminated by franchisor | 1 |
| Transferred to new owners | 5 |
| Closure rate | 1.5% of outlets |
3 ceased operations 2024; 9 total 2023; minimal terminations (1 in 2024)
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Amada worth it? — how it compares to 50 similar franchises
| Ongoing fees | 6% of sales | lower than most (median 7%) |
| Startup cost | from $118,190 | pricier than 71% of peers |
| Disclosure honesty | Grade B | more honest than 78% of senior & home care franchises |
| Closure rate | 1.5% of outlets | about average |
| Disclosed lawsuits | 10 | more litigious than 94% of peers |
Benchmarked against every senior & home care franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Amada
The franchisor's framing: Gross Billings data for 200 franchised outlets. 2024 median: $1,194,785; average $1,607,83… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Amada franchise — frequently asked
- How much does a Amada franchise cost?
- The FDD lists a total initial investment of about $118,190–$430,050, including a $57,000 initial franchise fee.
- How much do Amada franchise owners make?
- Gross Billings data for 200 franchised outlets. 2024 median: $1,194,785; average $1,607,831. Top quartile average $3,543,407. Bottom quartile average $347,943. First-year average $562,578. We grade this disclosure B for honesty.
- What are the Amada franchise fees?
- Amada's FDD discloses a $57,000 initial franchise fee, a 5% royalty on gross sales, a 1% advertising-fund contribution, for roughly 6% of gross sales in recurring fees before rent, labor, or debt service. Royalty 5% or minimum escalating to $4,000/month by month 61+. Ad fund 1%. Multiple additional fees: placements, transfers, territory encroachment.
- What is the Amada franchise profit margin?
- Amada does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross Billings data for 200 franchised outlets. 2024 median: $1,194,785; average $1,607,831. Top quartile average $3,543,407. Bottom quartile average $347,943. First-year average $562,578. Recurring fees alone take about 6% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Amada franchise failure rate?
- 3 ceased operations 2024; 9 total 2023; minimal terminations (1 in 2024)
- How many Amada locations are there?
- Amada's FDD reports 203 total outlets, with 3 that ceased operations in the most recent reporting year and 5 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Amada have complaints or lawsuits?
- Amada discloses 10 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Amada franchise worth it?
- It depends on the numbers, not the pitch. Amada scores B on disclosure honesty, carries about 6% of sales in ongoing fees, and discloses 10 legal matters. Get the real owner take-home before you sign.
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Compare Amada to similar franchises
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Source: MN CARDS 35114-202512-03 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with Amada or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.