BrightStar Care Franchise Cost, Revenue & Review 2026
- Investment
- $103K – $220K
- Disclosed sales
- $2.4M
- gross sales, not profit
- SBA charge-off
- Limited · 107 loans
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 $103K – $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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $103K – $220K
- 53rd pct Senior Care
- Avg gross sales
- $2.4M
- 36th pct Senior Care
- Royalty
- 5.3%
- 51st pct Senior Care
- Units
- 427
- 92nd pct Senior Care
- SBA charge-off
- N/A
Quick verdict · Senior Care · color = vs category peers
Green = favorable by >10% vs Senior Care median · 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 $103K – $220K including a $25K franchise fee, 5.3% ongoing royalty.
- RETURNSAverage unit revenue of $2.4M/year (median $2.0M).
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better).
- GROWTHPositive: net +23 franchised outlets in the latest year (34 opened, 11 closed); 21 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- BrightStar Franchising, LLC
- Parent company
- BrightStar Group Holdings, Inc.
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- BrightStar Holdings Parent, LLC
- FDD Item 1, page 9 of the 2026 FDD
- 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.
Same owner · FDD Item 1, page 9
1 other brand on this site name BrightStar Holdings Parent, LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 18% above 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
- $103K – $220K
- Middle of category vs category
- Liquid capital req'd
- $54K – $84K
- Bottom third — review vs category
- Franchise fee
- $25K – $50K
- Top 40% of category vs category
- Royalty
- 5.3%
- Tiered by sales volume · 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 net sales |
| Marketing / ad fund | 2.5% of net 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 128% above the senior care norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for BrightStar Care until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$230K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own 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?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
- gross sales
- Sample size
- 202 outlets
- vs category median 22 · large
- Range (low → high)
- $48K→$14.8MCited, not corroborated — printed on page 86 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $863K→$4.8M
- Bottom 25% → top 25%
- 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 15.0x 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: 15.0x.
Fee burden
Total ongoing fee load of 7.8% (near the Senior Care median).
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 medians
How BrightStar Care Compares
Category median of published Senior Care brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- 11
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 5
- Transferred
- 25
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 21
- 0.05 per open outlet · Item 20 Table 5
- Projected new
- 38
- Franchisor's next-year forecast
- 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.
Where the owners are · Item 20 owner list
44 current owners across 6 states.
- CA 30
- AR 4
- AL 3
- AZ 3
- CO 3
- AK 1
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 107 loans
- Limited SBA coverage: 107 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 107 loans
- 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%
- n=1,624 loans
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for BrightStar Care from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 71%
- Avg interest rate
- 7.69%
- Lender concentration
- 35.1%
- Job velocity
- 8.6 per $100K
- Startup risk premium
- 0.0pp
- NAICS benchmark
- 5.7%
- NAICS 621610
- Jobs supported
- 4,612
Top SBA lendersTop lender holds 35% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Live Oak Banking Company | 33 | $31.3M | 0.0% |
| 2 | The Huntington National Bank | 15 | $5.4M | N/A |
| 3 | American National Bank | 6 | $4.6M | 0.0% |
| 4 | Stearns Bank National Association | 4 | $883K | 0.0% |
| 5 | First Bank of the Lake | 3 | $701K | N/A |
| 6 | United Community Bank | 3 | $745K | N/A |
| 7 | Comerica Bank | 2 | $300K | 0.0% |
| 8 | SouthState Bank, National Association | 2 | $454K | 0.0% |
| 9 | Celtic Bank Corporation | 2 | $300K | 0.0% |
| 10 | CIBC Bank USA | 2 | $1.0M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| NJNew Jersey | 12 | 0 | 0.0% |
| CACalifornia | 11 | 0 | 0.0% |
| MIMichigan | 9 | 0 | 0.0% |
| TXTexas | 8 | 0 | -- |
| VAVirginia | 8 | 0 | 0.0% |
| FLFlorida | 6 | 0 | 0.0% |
| GAGeorgia | 6 | 0 | 0.0% |
| NCNorth Carolina | 5 | 0 | -- |
| PAPennsylvania | 5 | 0 | 0.0% |
| ILIllinois | 4 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
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)
Subject: the franchisor is a named party (defendant).
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · BDO USA, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2025 reported in two periods due to a February 28, 2025 change of control: Successor period (Feb 28 - Dec 28, 2025) Total Revenues $56,458,847 and Predecessor stub period (Dec 30, 2024 - Feb 27, 2025) Total Revenues $10,052,817. franchisor_revenue_yr1 reflects the Successor period only; yr2 is the full year ended Dec 29, 2024 ($62,136,000). Net loss of $(9,372,545) in Successor period driven by $26.2M depreciation/amortization from purchase accounting; net loss attributable to BrightStar Franchising, LLC was $(8,440,104).
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 75 / 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 territory |
| 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
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 $103K – $220K, with an initial franchise fee of $25K. 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.
Who owns BrightStar Care?
BrightStar Care is franchised by BrightStar Franchising, LLC. Its parent company is BrightStar Group Holdings, Inc.. The ultimate parent named in the FDD is BrightStar Holdings Parent, LLC. Source: FDD Item 1, 2026 filing.
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?
SBA 7(a) loan charge-off data is not available for BrightStar Care (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
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 75 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.