Brightstar Care Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$132,499 - $235,038
Franchise Fee
$20,000
Total US Locations
408
Business Summary
BrightStar Care operates agencies that provide comprehensive non-medical and/or medical home care services to clients in their homes, as well as supplemental healthcare staff to institutional clients like hospitals, nursing homes, clinics, and schools. The business model offers four main revenue streams: Non-Medical (Companion) Caregiver in-home care, Personal Care in-home care, Medical Skilled Care in-home care, and Supplemental Healthcare Staffing. BrightStar Care agencies match clients with qualified, pre-screened caregivers and healthcare professionals, with services ranging from assistance with daily living to in-home injections and physical therapy. The agencies also provide 24/7 client service support.
Corporate History
BrightStar Franchising, LLC was organized on January 21, 2005, and began offering BrightStar Care franchises in August 2005. Before this, an affiliate of BrightStar Franchising had already been operating a BrightStar Care business since October 2002, establishing the concept. In addition to BrightStar Care, an affiliate named BrightStar Senior Living Franchising, LLC, has offered "CARE HOMES" franchises since 2021 and previously offered "BRIGHTSTAR SENIOR LIVING" facilities from February 2015 until March 2023.
Financial Overview
Investment Range
$132,499 - $235,038
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$70,000
Royalty %
5.25%
Marketing %
2.5%
Equipment Costs (Low)
$6,400
Equipment Costs (High)
$18,500
Working Capital
$68,893
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
BrightStar Franchising's financial statements show a positive net income. The independent auditor issued an unqualified opinion, meaning the financial statements are presented fairly. An emphasis of matter note indicates that on February 28, 2025, the Parent Company entered into a stock purchase agreement to sell a majority of its shares, which led to the extinguishment of the Parent Company's outstanding debt for which BrightStar Franchising served as a guarantor. The auditor's opinion was not modified by this event.
Financing Details
BrightStar Franchising does not offer direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
408
Franchised Units
373
Corporate Units
35
Avg Square Footage
600
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
BrightStar Franchising has been involved in two litigation cases. The first case, Cosmo Fraser and Adam Fraser v. BrightStar Franchising, LLC, et al., was filed on March 15, 2017, by former franchisees who alleged violations of consumer fraud and franchise disclosure acts, statutory fraud, and negligent misrepresentation related to their franchise acquisition, territory, and financial performance. They sought over $500,000 in damages. BrightStar Franchising settled this case on March 1, 2018, paying $215,000. The second case, BrightStar Franchising, LLC v. Colleen M. Ryan, Daniel D. Ryan and Ryan Home Healthcare, LLC, was filed on February 4, 2025. In this ongoing arbitration, BrightStar Franchising initiated action against a former franchisee and its guarantors for clinical non-compliance and to enforce post-termination obligations (non-competition and non-solicitation), seeking at least $700,000. The former franchisee filed counterclaims for breach of agreement, tortious interference, and violation of the Illinois Franchise Disclosure Act, seeking over $2 million. BrightStar Franchising intends to vigorously pursue its claims and defend against the counterclaims.
Bankruptcy History
BrightStar Franchising has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their BrightStar Care franchise, franchisees must provide written notice of their intent to renew between six months and one year before the initial term expires. They must be in good standing under their current agreement, have fulfilled all monetary obligations to BrightStar Franchising and its affiliates, and have been in substantial compliance with the Franchise Agreement and other related agreements throughout the initial term. Franchisees must also meet all performance standards and minimum monthly royalty payments. As part of the renewal, they will be required to sign BrightStar Franchising's then-current franchise agreement (which may have materially different terms and higher fees), execute a new lease for the premises, sign a general release of claims, complete any new training requirements, and bring their agency up to current brand standards, including computer hardware and software upgrades. If these conditions are not met, the franchise may not be renewed.
Training & Support Program
Franchisor Assistance
BrightStar Franchising provides comprehensive assistance to its franchisees. Before opening, BrightStar Care helps with site selection and lease review, assists in ordering initial marketing materials, and supports goal-setting and business planning. New owners attend two or three 3-4 day training sessions at the corporate headquarters or a nearby center, covering operations, sales, and clinical topics, supplemented by online e-learning. Additionally, two to four days of training are provided for key positions including branch/operations managers, directors of nursing (DONs), and salespersons. New owners also participate in the 'BrightStart' (for new agencies) or 'ReStart' (for acquired agencies) programs, which include pre-opening checklists and post-opening coaching for 12-27 months. Ongoing support includes regular consultation and advice, administration of the General Marketing Fund with libraries of approved materials, and access to approved goods and services. BrightStar Care maintains the Athena Business System (ABS) and its website, revising the Operations Manual periodically with online updates and providing announcements via intranet, newsletters, and email. Optional on-site training and additional regional or group training programs are available for a fee. Franchisees and their key personnel are required to attend annual conferences and Branch Leadership Conferences, with registration and travel expenses paid by the franchisee. Clinical coaching sessions are also offered yearly to assist with Joint Commission accreditation.
Initial Training Hours
123
Training Location
Corporate headquarters in Bannockburn, IL or a nearby training/conference center in Lake County, Illinois, or via e-learning/virtual environment.
Ongoing Support
After opening, BrightStar Care franchisees receive regular consultation and advice for administrative and operational issues, communicated via telephone, writing, electronically, or in person. The franchisor administers the General Marketing Fund, provides libraries of approved marketing materials, and makes goods and services available through approved suppliers. Mandatory advanced training programs for key personnel may be required (for a fee), with new replacement managers needing to complete applicable training within 90 days. BrightStar Care maintains the Athena Business System (ABS) and its website, and periodically revises the Operations Manual, providing electronic access to all updates. Information on program improvements is shared through intranet, newsletters, and email alerts. Additional optional on-site training is available for a daily fee per trainer plus expenses, as are regional or group training programs for a daily fee per attendee plus expenses. Franchisees and their required key position employees must attend annual conferences and Branch Leadership Conferences (both in-person or virtual) for their full duration, covering subjects like recruiting, client relations, and operational developments. A clinical coaching session is also offered annually to help prepare for Joint Commission accreditation.
Franchise Requirements
Ideal Candidate Profile
BrightStar Care seeks franchisees who are committed to full-time, hands-on involvement in their business, especially for the first two years of operation. Ideal candidates should be highly engaged in recruiting, advertising, marketing, sales call conversion, customer satisfaction, and employee retention, as these factors correlate strongly with agency success. Franchisees (or their owners) must serve as the 'Control Person,' living within a one-hour drive-time of the territory and being in the office daily on a full-time basis, or at minimum within the Protected Territory. While prior healthcare industry experience is not required, candidates must be diligent, self-reliant, and responsible for investigating and complying with all applicable federal, state, and local laws and regulations related to healthcare operations and licensing. They should possess the financial stability to reinvest in the business and potentially defer personal salary in the first year.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
hands-on
Territory Type
Protected
Territory Size Requirements
BrightStar Care territories are defined by zip codes. A standard territory typically includes a population of 200,000 to 300,000 people, with a minimum of 15,000 residents aged 65 or older. If a standard territory exceeds 300,000 people, franchisees pay an additional $100 per 1,000 people over that limit. Medium Density Market and Small territories have populations less than 200,000. Territory populations are determined using the GbBis mapping application and updated every six months by the U.S. Census Bureau. If a territory grows to 800,000 or more, becoming a 'jumbo territory,' BrightStar Care may require the franchisee to maintain additional offices or key personnel if certain performance metrics are not met.