BrightStar Care Homes
Bottom line
- Total investment $201K – $2.2M including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $691K/year (median $707K).
- Rated MODERATE with a risk score of 60/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Homes unit return on the cash you put in?
Unlevered ROIC · per unit
12%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 BrightStar Care Homes units return on equity?
Equity IRR · 5-yr
45.7%
6.56× MOIC
Year-1 DSCR
1.96×
EBITDA ÷ debt service
Equity required
$2.5M
on $10.7M purchase
Total debt
$8.2M
SBA $5.0M + senior + seller note
Overview
About
BrightStar Care Homes franchisees operate home care agencies providing non-medical in-home services (personal care, companionship, household support) to elderly and disabled clients. Daily operations involve recruiting and training caregivers, managing client schedules and billing, ensuring regulatory compliance, and building relationships with referral sources (hospitals, social services, 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 · 15 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 Homes presents meaningful litigation risk, undisclosed profitability metrics, and a tiny franchise network with franchisor financial concerns that warrant careful validation before investment.
Score breakdown · what drove the 60 / 100 rating
- 01MEDNet Income not disclosed in Item 19 despite $691K average revenue — unable to validate actual profitability
- 02MINORFive active lawsuits/arbitrations (2 settled franchisee suits + 3 franchisor claims for post-termination damages) indicate systemic relationship friction
- 03MINOROnly 5 franchised units with 25% YoY growth is minimal scale; small network limits peer support and brand leverage
- 04MINORHigh fee-to-revenue ratio: $50K franchise fee + 5% royalty on net billings creates significant upfront and ongoing cost burden
- 05HIGHGoing Concern status suggests financial instability at franchisor level, raising questions about support infrastructure sustainability
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
22 numbers
One-time purchase · CSV download · Validation questions included
FDD download
BrightStar Care Homes · FDD (2024) PDF