Detailed Estimates of BrightStar Care Franchise Costs Based on Item 7 (Estimated Initial Investment) of BrightStar Care’s 2019 Franchise Disclosure Document
1. Initial Franchise Fee: $50,000 for the first 200,000 to 250,000 in population in your Protected Territory. Plus additional fee for Protected Territory with population over 250,000 but less than 400,000.
2. Leased Space for Agency: $3,200 to $7,600
- You will need approximately 250 to 800 square feet of office space. This estimate includes rent for the first three months and a deposit of the last month’s rent.
- If a landlord is paying for some of the improvements to the leased space, it may amortize that expense in the form of additional rent.
3. Furnishings: $1,700 to $3,500
- This includes 3 desks, 3 office chairs, 2 guest chairs, telephone equipment, pictures, curtains, and office supplies.
4. Computer Infrastructure: $3,500 to $5,500
5. Signage: $300 to $1,000
- All signage is subject to BrightStar Care’s approval.
6. Utility Deposits: $100 to $500
- This item includes utility deposits, telephone company deposits, electric, and other energy company deposits.
7. Marketing Materials (brochures, business cards, etc.): $500 plus shipping and handling
- Includes a 3-month supply of brochures and business cards.
8. Business Licenses and Other Required License: $200 to $8,603
- State rules vary on medical and staffing licensure and other associated licenses, e.g. CLIA waiver.
- You are responsible for investigating the availability of and requirements for obtaining all necessary licenses in your state. You should conduct this investigation before acquiring a BrightStar Care franchise because you cannot operate as a franchisee without all required licenses.
- A Home Health Agency License (“HHA”) to perform skilled services is not required until you achieve $15,000 in weekly revenue. Some states will still require personal care or staffing licenses and costs will vary depending on your state.
- The high end of this range ($8,603) is for California, which requires a $3,000 surety bond for Nurse Registry application and $5,165 for the HCO license. The HCO license in California enables you to perform companion and personal care services.
- If you are not able to obtain a newly-issued home health agency or other required license in your state because of a state-imposed or other moratorium, you might be able to acquire a previously-issued license from an existing provider in the state that no longer needs its license and is interested in selling its license to a third party. However, the cost of buying a previously-issued license from an existing provider might be significantly greater than the estimate provided above for a newly-issued license.
9. Director of Nursing hired in advance of opening to meet licensure requirements, as needed: $0 to $6,192
- In most states, no personal care licenses require a nurse to be identified on the license, though there are some states in which the license covers both personal care and skilled (including NH, KS, OK, TX, MN, VA, and WA). In those states, you would need a DON identified as part of your license application. The high end in this range includes salary for a part-time DON to satisfy that requirement.
10. Insurance (excluding workers’ comp): $1,488 to $1,870
- The estimate above represents your estimated insurance costs (excluding workers’ comp) for the first three months you operate your Agency.
11. Workers’ Comp Insurance: $470 to $6,459
- The estimate above represents your estimated workers’ comp for the first three months you operate your Agency.
12. Employee Travel and Living Expenses Associated with Training: $4,000 to $8,000
- These expenses should average $130 per day per person in attendance.
13. Legal Fees: $1,000 to $5,000
- The estimate above reflects the fees for review of BrightStar employment templates and customer contract templates for any necessary modifications required by local and state law.
14. Additional Operating Funds – 3 Months: $26,540 to $49,583
- The estimate for additional operating funds above reflects the period through the end of 3 months after opening your Agency. With increased difficulty in accessing credit, BrightStar Care recommends having additional working capital on-hand.
- Specifically, BrightStar Care estimates that you will need approximately $133,172 to $266,866 in total additional operating funds for the first 12 months you operate the Agency, without factoring the amount of gross margin that would reduce this amount.
15. Total: $93,048 to $154,307
- The franchisor relied upon its franchisees’ experiences in opening and operating their BrightStar Care Agencies in preparing these estimates.