BrightStar Care Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
BrightStar Care is a home-care franchise providing both non-medical caregiving and skilled nursing to seniors and disabled clients, plus medical staffing. Franchisees run an agency recruiting caregivers and nurses and managing scheduling, compliance, and billing.
FranchiseVerdict summary · 2026
A BrightStar Care franchise requires a total initial investment of $128K – $220K, including a $25K – $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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $128K – $220K
- 74th pct Senior Care
- Avg gross sales
- $2.4M
- 33rd pct Senior Care
- Royalty
- 5.3%
- 38th pct Senior Care
- Units
- 427
- 92nd pct Senior Care
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Senior Care · color = vs category peers
Green = favorable by >10% vs Senior Care avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $128K – $220K including a $50K franchise fee, 5.3% ongoing royalty.
- RETURNSAverage unit revenue of $2.4M/year (median $2.0M).
- RISKVerdict A (Strongest tier), verdict score 85/100 (higher is better). SBA loan charge-off rate of 0.0% across 107 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- 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
- $66.5M
- 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
- CEO
- Andrew Ray
- Headquarters
- IL
- Founded
- 2005
- FDD year
- 2026
- States available
- 40
Can you afford it, and what does the money buy?
Entry cost runs 33% below the typical senior care franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown19 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $128K – $220K
- Bottom third — review vs category
- Liquid capital req'd
- $54K – $84K
- Bottom third — review vs category
- Franchise fee
- $25K – $50K
- Middle of category vs category
- Royalty
- 5.3%
- tiered · 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 |
What do units actually make?
Average unit sales run 66% above the senior care norm.
Source: FDD 2026 · Item 19
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
$419K
17.3% margin
Unlevered ROIC
172%
EBITDA / total invested capital
Payback
7 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one BrightStar Care unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
172%
Above the 30–60% band. Verify revenue is per-unit average
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 BrightStar Care units return on equity?
Equity IRR · 5-yr
27.2%
3.33× MOIC
Year-1 DSCR
3.00×
EBITDA ÷ debt service
Equity required
$12.4M
on $24.9M purchase
Total debt
$12.5M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $2.4M
- Per unit, per year
- Median gross sales
- $2.0M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- revenue
- Sample size
- 202
- vs category median 22 · large
- Range (low → high)
- $48K→$14.8M
- Cohort dispersion (min → max)
- Quartile band
- $863K→$4.8M
- Bottom 25% → top 25%
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 79 Senior Care brands
Revenue is 14.0x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.4M/year in gross sales. Median is $2.0M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 14.0x.
Fee burden
Total ongoing fee load of 7.8% (near the Senior Care average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 14.1% CAGR over 3 years across 427 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Senior Care averages
How BrightStar Care Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 427
- Opened
- 34
- Last reporting year
- Closed
- 3
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 5
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.8%
- Company-owned
- 31
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Net growth (3-yr)
- +14.1%
- Net unit change over 3 years
- 3-yr CAGR
- +14.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 34
- Closed (3yr)
- 3
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 5
- Transfers (3yr)
- 25
- Reacquired (3yr)
- 0
- 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 · 6 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
- Typical loan rate
- 7.7%
- avg rate to borrowers
- Franchised industry avg
- 7.5%
- brand beats franchise avg ↓
- Jobs supported
- 4,612
- 8.6 per loan
- Lender concentration
- 35%
- top lender's share
Borrower mix: 51% went to startups / new businesses, 49% to established operators
Franchise vs independent — in home health care services, franchised businesses charge off at 7.5% vs 11.5% for independents — franchising is associated with 35% lower SBA default risk in this category.
Vintage analysis
BrightStar Care charge-off rate by loan vintage
Top lenders financing BrightStar Care franchisees
Showing 3 of 29 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
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.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
One primary pending arbitration (BrightStar v. Ryan, AAA No. 01-25-0000-5569) involving post-termination obligations and $700k+ claim; respondents filed counterclaims seeking $2M+. One concluded case settled for $215,000 (Fraser v. BrightStar, 2018). Three franchisor-initiated actions for post-termination enforcement and unpaid royalties filed 2025.
Largest disclosed settlement: $215,000
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 85 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 7.8% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 200,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Termination groundsℹ | 21 |
| Curable defaultsℹ | 18 |
| Mandatory arbitration | Yes |
| Arbitration location | Bannockburn, Illinois (within 10 miles of principal business address) |
| Jury trial waiver | Yes |
| Governing law | IL |
| Litigation count | 5 |
View Item 3 litigation summary
One primary pending arbitration (BrightStar v. Ryan, AAA No. 01-25-0000-5569) involving post-termination obligations and $700k+ claim; respondents filed counterclaims seeking $2M+. One concluded case settled for $215,000 (Fraser v. BrightStar, 2018). Three franchisor-initiated actions for post-termination enforcement and unpaid royalties filed 2025.
Items 10, 11
Training & Operations
- Classroom training
- 49 hrs
- On-the-job training
- 0 hrs
- Training location
- Bannockburn, IL (or nearby Lake County conference center; virtual option)
- Ongoing training
- Required
- Time to open
- 5 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor must approve within 10 calendar days
- 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
45 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 $128K – $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 $2.0M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the BrightStar Care FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the BrightStar Care FDD and qualifies whose outlets they describe.
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 396 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 verdict score of 85 out of 100 (higher is better), 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.
For franchisors
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If you represent BrightStar Care, you can request corrections or provide updated information.
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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.