FDD Analysis 2025 FDD

BrightStar Care Homes Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from BrightStar Care Homes's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the BrightStar Care Homes FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$132,499 - $235,038
Franchise Fee$25,000

Investment Breakdown

Initial Franchise Fee See Note 1$25,000 - $50,000
Leased Space for Agency See Note 2$4,000 - $9,600
Utility Deposits See Note 6$300 - $500
Furnishings See Note 3$2,000 - $4,000
Computer Infrastructure Package See Note 4$4,000 - $9,500

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee5.25% of gross sales
Marketing/Advertising Fee2.5% of gross sales

Other Ongoing Fees

Additional Administrative Fee (National Accounts)4%
Monthly Athena Business System and Email Service Fee0.83%
Microsoft Teams Enterprise and Office 365 E1 Package optionVaries
Multi-factor Authentication Security LicenseVaries
State Electronic Visit Verification (“EVV”) Set-up FeeVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$1,984,427/year
Disclosure Year2025
Reporting Units
Revenue VarianceHigh variance (wide performance range)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

408

Total Units

+30

Net Growth (YoY)

+7.9%

Growth Rate

Franchised Units373
Company-Owned Units35

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

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