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CARE HOMES
BrightStar Care Homes franchises enable operators to develop and manage up to three 10-to-12-bed assisted-living and memory-care communities in residential settings, providing supervised residential assisted-living, memory-care, and ancillary services to seniors and individuals in need. Franchisees must staff qualified healthcare professionals 24/7 and comply with all relevant healthcare regulations. The business targets the growing aging population requiring assistance with daily living activities or specialized care for conditions like Alzheimer’s or dementia.
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Franchise Costs
5% royalty + greater of 2.5% or $500/mo per Community ad fund + $150/mo electronic client management software (additional $10/mo per client over 10); technology/email fee of $100-$500/mo per Community if implemented
Financial Performance
Item 19 Financial Performance
Data Based On: 3 franchised BRIGHTSTAR CARE HOMES Communities, specifically Prickly Pear, Taft, and Stephen Communities.
* Average gross revenue calculated from the latest full year revenue of 3 franchised communities: Prickly Pear (2022): $570,166, Stephen (2023): $653,938, Taft (2023): $744,293. Average = ($570166 + $653938 + $744293) / 3 = $656,132. Median gross revenue is the middle value of the sorted revenues: $653,938. Revenue top quartile and bottom quartile are not applicable for a sample size of 3 units.
Extracted Item 19 Section
Avg. Revenue: $656,132
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Unlock financial performance dataCARE HOMES Franchise Analysis
In the exploding senior care market, BrightStar Care Homes stands out with its model of small residential assisted-living communities. Item 19 discloses revenue figures across its young system, while a single SBA loan and ongoing litigation paint a picture of early-stage risks and rewards. Does this niche player's trajectory signal a smart bet amid America's aging boom?
Item 7 of the 2024 FDD pegs total investment at $201,308-$329,850, including a $50,000 franchise fee, covering build-out for up to three 10-12 bed homes staffed 24/7 by healthcare pros. Ongoing fees hit 5% royalty plus 2.5% ad fund (or $500/month per community, whichever greater), plus $150/month software fee ($10/extra client over 10) and potential $100-$500/month tech fees per community. Item 19 shines brightly: average gross revenue $656,132, median $653,938 across 5 units—impressive for a system franchising since 2021 under parent BrightStar Group. That translates to potential top-line scalability in a high-demand category, though net profits depend on tight staffing and regulatory compliance.
System health shows promise with growth from 4 locations in 2022 to 5 in 2023 (+25%), projecting 4 new units soon. One SBA loan on record at $654,000 average hints at financing feasibility but limited track record. Red flags emerge in litigation: former franchisees allege breach, fraud, misrepresentation on territory/software/marketing, countered by franchisor claims for damages post-termination. For investors eyeing senior care, the revenue punch and growth momentum are hooks, but litigation and tiny footprint demand scrutiny of operational realities before scaling to multiple homes.
Analysis based on the 2024 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How CARE HOMES Compares
Key Insights
- Higher investment than 91% of Senior Care franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
CARE HOMES Current | $201K – $330K | $50K | 5.0% | 5 |
| SYNERGY HOME CARE | $80K – $164K | $55K | 5.0% | 626 |
| RIGHT AT HOME | $75K – $119K | $50K | 5.0% | 566 |
| Visiting Angels | $125K – $171K | $65K | 3.0% | 541 |
| SENIOR HELPERS | $149K – $221K | $55K | 5.0% | 355 |
| ALWAYS BEST CARE SENIOR SERVICES | $90K – $146K | $50K | 6.0% | 275 |
Senior Care Average 43 franchises | $159K – $337K | $62K | 5.6% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 43 Senior Care franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2023)
Outlets by state across the United States
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for CARE HOMES franchisees (2017 – 2017)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
1 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
13 franchisee contacts on file from official FDD filings.
13 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Former franchisee claims alleging breach of contract, fraud, misrepresentation, and violations of franchise laws related to franchise acquisition, territory, software, and marketing; franchisor claims against terminated franchisees for post-termination liquidated damages and fees.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a CARE HOMES franchise ranges from $201,308 to $329,850. This includes a franchise fee of $50,000. Ongoing royalty fees are 5.0% of gross sales.
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