FDD Items 3 & 4 · 2026 filing
BrightStar Care litigation history
What BrightStar Care disclosed about lawsuits, arbitrations and bankruptcy in the 2026 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 5
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- $215K
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
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.
Item 3 (litigation) · 5 matters disclosed · 1 pending listed
Litigation cases
The franchisor
Pending (1)
BrightStar Franchising, LLC v. Colleen M. Ryan, Daniel D. Ryan and Ryan Home Healthcare, LLC
pendingBrought against a franchisee · filed 2025-02-04 · American Arbitration Association · 01-25-0000-5569
“… (American Arbitration Association, Case No.01-25-0000-5569, filed on or about February 4, 2025).”Page 14 of the 2026 FDD, Item 3
Concluded (1)
Cosmo Fraser and Adam Fraser vs. BrightStar Franchising, LLC, Shelly Sun, Thomas Gilday, Scott Oaks, et al.
settledBrought by a franchisee · filed 2017-03-15 · American Arbitration Association · 02-16-0005-0209
“… (American Arbitration Association Case No. 02-16-0005-0209, filed March 15, 2017).”Page 15 of the 2026 FDD, Item 3
Outcome: “We paid the Frasers a total of $215,000, the parties exchanged mutual releases, and the case was dismissed with prejudice.”
Status not stated in the filing (3)
BrightStar Franchising, LLC v. Foreside Management Company, Mark E. Woodsum, and Claire Woodsum
Brought against a franchisee · filed 2025-07-28 · U.S. District Court for the Northern District of Illinois · 1:25-cv-08741
“… (United States District Court for the Northern District of Illinois, Case No. 1:25-cv-08741, filed on July 28, 2025).”Page 15 of the 2026 FDD, Item 3
BrightStar Franchising, LLC v. Humdum, LLC, Suresh Pandurangam, and Jyoti Rai
Brought against a franchisee · filed 2025-01-23 · American Arbitration Association · 01-25-0000-3477
“… (American Arbitration Association, Case No.01-25-0000-3477, filed on or about January 23, 2025).”Page 15 of the 2026 FDD, Item 3
BrightStar Franchising, LLC v. Udolie Corp., Stacie E. Jeffers, and Michael R. Christensen
Brought against a franchisee · filed 2025-12-01 · American Arbitration Association · 01-25-0009-1279
“… (American Arbitration Association, Case No. 01-25-0009-1279, filed December 1, 2025).”Page 15 of the 2026 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
Disclosure signals that moved the score
How this shows up in the verdict
- Four active litigation matters including two franchisor-initiated royalty recovery actions suggest collection or compliance issues systemic to the network
- Prior territory disclosure settlement ($215,000) indicates past franchisor misrepresentation on a core franchisee protection
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?