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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 5
- Item 3, as counted in the filing
- Largest disclosed settlement
- $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.
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?