Detailed Estimates of BrightStar Care Franchise Costs Based on Item 7 (Estimated Initial Investment) of BrightStar Care’s 2016 Franchise Disclosure Document
1. Initial Franchise Fee: $50,000 for the first 200,000 to 250,000 population in your Protected Territory plus $200 for each additional 1,000 (or portion thereof) individuals in your Protected Territory above 250,000
2. Leased Space for Agency: $3,200 to $7,200
- 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, they may be amortizing that expense in the form of additional rent.
3. Furnishings: $1,500 to $3,000
- 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
- You will initially need 4 desktop computers or laptops running the current Microsoft Windows operating system, and associated peripherals, including monitors, Office suite and other software, local network router, other network accessories, a printer, a scanner, and any installation services to install in your office.
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.): $900 plus shipping and handling
- Includes a 3-month supply of brochures and business cards.
8. Grand Opening Advertising: $0 to $3,000
9. Business Licenses and Home Health Agency License: $200 to $7,400
- State rules vary on medical and staffing licensure and other associated licenses, e.g. CLIA waiver.
10. Joint Commission Accreditation Application Fee and Membership and Initial Accreditation Visit: $0 to $4,250
- You must obtain and maintain in good standing Joint Commission Accreditation at all times during the term of your Franchise Agreement.
11. Consultants and/or Director of Nursing hired in advance of opening to meet licensure requirements, as needed: $0 to $5,040
- Some states require you to hire a Consultant and/or Director of Nursing in advance of opening to meet state licensure requirements.
12. CPA to Certify Licensure Submission: $0 to $1,000
- This estimate will vary depending on your financial acumen.
13. Insurance (excluding workers’ comp): $4,455 to $6,876
- The estimate above represents your estimated insurance costs (excluding workers’ comp) for the first three months you operate your Agency.
14. Workers’ Comp Insurance: $645 to $14,890
- The estimate above represents your estimated workers’ comp for the first three months you operate your Agency.
15. CSA (Certified Senior Advisor) Training and Certification: $0 to $1,595
- The estimate above reflects the fees for CSA training and certification.
16. Various Dues and Memberships: $0 to $500 annually. Paid within first three months in full.
17. Loan Packaging Fee (SBA Loan or Non-SBA Loan): $0 to $2,500
- Bancorp Bank SBA Loan Packaging Fee is $2,500 and Bank of America, NA Non-SBA Loan packaging fee is $1,500.
18. Employee Travel and Living Expenses: $3,360 to $4,260
- These expenses should average $120 per day per person in attendance.
19. 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.
20. Additional Operating Funds – 3 Months: $26,276 to $64,027
- 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 $128,586 to $312,944 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.
21. Total: $92,371 to $174,032
- The franchisor relied upon its franchisees’ experiences in opening and operating their BrightStar Care Agencies in preparing these estimates.