BrightStar CareFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A BrightStar Care franchise requires a total initial investment of $96K – $220K, including a $50K franchise fee and an ongoing 5.3% royalty[2]. Per the 2026 FDD, average unit revenue was $2.4M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 107 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $96K – $220K
- 48th pct Senior Care
- Avg gross sales
- $2.4M
- 65th pct Senior Care
- Royalty
- 5.3%
- 35th pct Senior Care
- Units
- 427
- 91st pct Senior Care
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Senior Care · color = vs category peers
Green = >15% above Senior Care avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 15.2x in gross revenue, well above the typical 1.5-2.5x range.
Only 0.0% of 107 SBA loans charged off, well below the 16% franchise average.
Bottom line
- Total investment $96K – $220K including a $50K franchise fee, 5.3% ongoing royalty.
- Average unit revenue of $2.4M/year (median $1.9M).
- Verdict A (Top Quintile) with a risk score of 14/100. SBA loan charge-off rate of 0.0% across 107 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- BrightStar Franchising, LLC
- Parent company
- BrightStar Group Holdings, Inc.
- Ultimate parent
- BrightStar Holdings Parent, LLC
- CEO title
- Chief Executive Officer
- Andrew Ray
- Incorporated in
- IL
- HQ
- 2275 Half Day Road, Suite 210, Bannockburn, IL 60015
- Auditor
- BDO USA, P.C.
- Audited financials
- Franchisor revenue
- $56.8M
- vs $62.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
BrightStar Care franchisees operate home care staffing agencies, recruiting, training, and deploying caregivers to provide in-home services (personal care, companionship, skilled nursing support) to elderly and disabled clients. Day-to-day operations involve client acquisition, caregiver payroll/scheduling, compliance with healthcare regulations, and billing management to healthcare providers and families.
- CEO
- Andrew Ray
- Headquarters
- IL
- Founded
- 2005
- FDD year
- 2026
- States available
- 40
FDD Item 7 · 2026 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $25K | $50K | |
| Leased Space for Agencynot refundable | $4K | $10K | |
| Utility Depositsnot refundable | $300 | $500 | |
| Furnishingsnot refundable | $2K | $4K | |
| Technology Infrastructurenot refundable | $4K | $10K | |
| Signagenot refundable | $400 | $5K | |
| Marketing Materials (brochures, business cards, etc.)not refundable | $250 | $500 | |
| Office Supplies, PPE, and medical suppliesnot refundable | $600 | $730 | |
| Printing, reproduction & postagenot refundable | $0 | $300 | |
| Business Licenses and Other Required Licensenot refundable | $200 | $10K | |
| Local Marketing Spendnot refundable | $3K | $5K | |
| State Electronic Visit Verification (EVV)not refundable | $0 | $2K | |
| Director of Nursingnot refundable | $0 | $9K | |
| Insurance (excluding workers comp)not refundable | $2K | $5K | |
| Workers' Comp Insurancenot refundable | $445 | $3K | |
| Employee Travel and Living Expenses Associated with Trainingnot refundable | $5K | $10K | |
| Legal Feesnot refundable | $2K | $6K | |
| Joint Commission Accreditationnot refundable | $0 | $6K | |
| Additional Operating Funds - 3 monthsnot refundable | $54K | $84K | |
| Total initial investment | $103K | $220K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$416K
17.2% margin
Unlevered ROIC
183%
EBITDA / total invested capital
Payback
7 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $96K – $220K
- Near category avg vs category
- Liquid capital req'd
- $54K – $84K
- Below avg, review vs category
- Franchise fee
- $25K – $64K
- Near category avg vs category
- Royalty
- 5.3%
- Gross Sales · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 7.8%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.3% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Technology fee | $250 |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Inventory (initial) | $600 – $730 |
| Total fee load | 7.8% of rev |
Financial Performance
- Avg gross sales
- $2.4M
- Per unit, per year
- Median gross sales
- $1.9M
- Item 19 type
- Average and Median Revenue
- Sample size
- 207 units
- vs category median 22 · large
- Range (low → high)
- $48K→$14.8M
- Cohort dispersion (min → max)
- Quartile band
- $853K→$4.8M
- Bottom 25% → top 25%
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 70 Senior Care brands
Revenue is 15.2x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Senior Care averages
How BrightStar Care Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 427
- Opened
- 34
- Last reporting year
- Closed
- 3
- Turnover rate
- 0.7%
- Company-owned
- 31
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Net growth (yr3)
- +6.2%
- Net unit change last year
- 3-yr CAGR
- +14.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 11
- Closed (3yr)
- 4
- Non-renewed (3yr)
- 2
- Transfers (3yr)
- 25
- Reacquired (3yr)
- 17
- Franchisor bought back
- Transfer rate
- 5.8%
- Owners selling to other franchisees
- Termination rate
- 0.5%
- Franchisor-initiated terminations
- Ceased ops
- 0.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 107
- Loan volume
- $58.9M
- Median loan
- $247K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 29
- Defaults
- 0
Vintage analysis
BrightStar Care charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into BrightStar Care's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 9-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 107 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
BrightStar Care presents meaningful due diligence concerns due to undisclosed franchisee profitability, multiple active litigation matters suggesting compliance/collection friction, and a prior settlement over territory disclosures — warranting deep validation before committing $96K-$220K.
Litigation (Item 3)
BrightStar Franchising has 5 disclosed cases: (1) PENDING - Ryan arbitration (AAA Case No.01-25-0000-5569, filed 2/4/2025): Franchisor sued former franchisees for non-compliance and enforcement of post-termination obligations seeking $700k+; respondents counterclaimed for breach, tortious interference, and IFDA violations seeking $2M+; final hearings scheduled 5/12/2026. (2) CONCLUDED - Fraser arbitration (AAA Case No. 02-16-0005-0209, filed 3/15/2017): Former Georgia franchisees sued for IFDA/ICFDPA violations and fraud; settled 3/1/2018 for $215,000 with mutual releases and dismissal with prejudice. (3-5) FRANCHISOR-INITIATED ENFORCEMENT: Woodsum case (Federal Court, Case No. 1:25-cv-08741, filed 7/28/2025) for post-termination obligations enforcement; Jeffers/Christensen case (AAA Case No. 01-25-0009-1279, filed 12/1/2025) for unpaid royalties/fees/liquidated damages; Pandurangam/Rai case (AAA Case No.01-25-0000-3477, filed 1/23/2025) for unpaid royalties/fees/liquidated damages.
Largest disclosed settlement: $500,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · BDO USA, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 14 / 100 rating
- 01MEDNo Item 19 (Average Net Income) disclosed — inability to assess actual franchisee profitability despite $2.4M average revenue
- 02HIGHFour active litigation matters including two franchisor-initiated royalty recovery actions suggest collection or compliance issues systemic to the network
- 03MINORPrior territory disclosure settlement ($215,000) indicates past franchisor misrepresentation on a core franchisee protection
- 04MINORModest unit growth of 6.2% YoY combined with absence of profitability data raises sustainability questions
- 05MEDHigh royalty burden (5.25-6.25% of billings) on service-based business with undisclosed margins creates profitability risk
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Zip code based |
| Protected territory | Yes |
| Territory population | 200,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 5 |
View Item 3 litigation summary
BrightStar Franchising has 5 disclosed cases: (1) PENDING - Ryan arbitration (AAA Case No.01-25-0000-5569, filed 2/4/2025): Franchisor sued former franchisees for non-compliance and enforcement of post-termination obligations seeking $700k+; respondents counterclaimed for breach, tortious interference, and IFDA violations seeking $2M+; final hearings scheduled 5/12/2026. (2) CONCLUDED - Fraser arbitration (AAA Case No. 02-16-0005-0209, filed 3/15/2017): Former Georgia franchisees sued for IFDA/ICFDPA violations and fraud; settled 3/1/2018 for $215,000 with mutual releases and dismissal with prejudice. (3-5) FRANCHISOR-INITIATED ENFORCEMENT: Woodsum case (Federal Court, Case No. 1:25-cv-08741, filed 7/28/2025) for post-termination obligations enforcement; Jeffers/Christensen case (AAA Case No. 01-25-0009-1279, filed 12/1/2025) for unpaid royalties/fees/liquidated damages; Pandurangam/Rai case (AAA Case No.01-25-0000-3477, filed 1/23/2025) for unpaid royalties/fees/liquidated damages.
Items 10, 11
Training & Operations
- Classroom training
- 95 hrs
- On-the-job training
- 0 hrs
- Training location
- headquarters, nearby training/conference center, or conducted virtually
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- POS system
- Athena Business System (ABS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Athena Business System (ABS)
Item 20 · call current owners
Franchisee Contacts
54 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
BrightStar Care · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a BrightStar Care franchise?
The total investment to open a BrightStar Care franchise ranges from $96K – $220K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do BrightStar Care franchise owners earn?
According to Item 19 of the BrightStar Care FDD, the average gross sales per unit is $2.4M. The median is $1.9M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is BrightStar Care's franchise failure rate?
Based on SBA 7(a) loan data, BrightStar Care has a charge-off rate of 0.0% across 107 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many BrightStar Care franchise locations are there?
As of their most recent FDD filing, BrightStar Care has 427 total units in the United States, including 347 franchised units and 31 company-owned units. 34 new units were opened in the latest reporting year.
Is BrightStar Care a good franchise to buy?
FranchiseVerdict rates BrightStar Care as a A-grade franchise with a risk score of 14 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.