BrightStar Care
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).
- Rated STRONG with a risk score of 41/100. SBA loan default rate of 0.0% across 182 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one BrightStar Care unit return on the cash you put in?
Unlevered ROIC · per unit
236%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 BrightStar Care units return on equity?
Equity IRR · 5-yr
24.6%
3.01× MOIC
Year-1 DSCR
3.45×
EBITDA ÷ debt service
Equity required
$20.8M
on $36.8M purchase
Total debt
$16.0M
SBA $5.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 41 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
54 numbers
One-time purchase · CSV download · Validation questions included
FDD download
BrightStar Care · FDD (2026) PDF