A32/100FDD 2026
BrightStar Care — Litigation & Risk
Health & Wellness - Senior Care · FDD Items 3, 4 & 5
Moderate — Review
5 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
32 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
94
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$53.9M
Avg loan size
$573K
Participating lenders
27
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Illinois
State whose law governs disputes — relevant if you're not based there
What drove the 32/100 rating
Risk Score Breakdown
- 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 FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.