In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the BrightStar Care franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a BrightStar Care franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of BrightStar Care’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- 2014 average revenue, displayed by quartile, earned by BrightStar franchisees for their first location only
- 2014 average, median, high, and low gross margin percentage for all Agencies opened by franchisees as their first location (regardless of how long the Agencies were in operation during the particular year), including all resale locations, for locations open 3 months or longer as of December 31, 2014
- 2014 average, high, and low hours billed per client per week for all franchisee first locations, including all resale locations, open and operating for at least 3 months as of December 31, 2014
- 2014 average weekly hours worked per employee; average, high, and low number of clients and number of employees per week during the four pay periods running from November 30, 2014 through December 21, 2014 for all franchisee first locations for all ongoing clients for locations open and operating 3 months or longer as of December 31, 2014
- 2014 average mix of business for all Agencies in operation in 2014
- 2014 average and median months to break-even for all first location Agencies open at least 12 months as of December 31, 2014
- 2014 total, average, high, and low national account revenues contributed to the system by the national account program for all locations from January 1, 2014 through December 31, 2014
Section I – Background Information
With more than 270 locations in 36 states, BrightStar Care is a leading chain in the medical and non-medical home care and medical staffing segment with a focus on seniors. Founded in 2002, the company began franchising in 2005 and has enjoyed steady, moderate growth over the last several years.
After experiencing what it was like trying to find care for a loved one, Shelly and JD Sun realized there was a real need to address in the senior care segment. They founded BrightStar Care as a family to address that need for senior services that were more dependable, more supportive, and more complete.
Their niche has expanded beyond seniors to include all kinds of home care, including childcare (including newborn care, babysitter, and nanny services) and medical staffing services for individuals, families and healthcare facilities.
Here’s how BrightStar Care gives people peace of mind about their loved ones:
Keeping the Comfort Zone
The plain fact of the matter is that people are most comfortable in their own homes, a place that feels safe and familiar. BrightStar Care’s mission is to help your loved ones stay right where they want to be for as long as possible, providing every service they need from companionship, toileting, and hygiene assistance to in-home blood draws.
These services are available around the clock to meet their clients’ every need.
BrightStar Care also provides healthcare staffing solutions to businesses on a temporary, temporary to permanent, and permanent placement basis. The company can provide personnel to hospitals, nursing homes, doctors’ offices, labs, or anywhere healthcare staff is needed.
Its national account services range from insurance assessments and IV infusion therapy to home health, in addition to delivering flu clinic services to corporate, commercial, and retail clients.
BrightStar has made it its mission to go over and above to set a higher standard of care. The professional care team is led by a registered nurse Director of Nursing so that loved ones receive expert, compassionate care.
Those higher standards are validated by both the Joint Commission Accreditation and by Press Ganey Client Satisfaction Surveys. The company’s 2014 Patient Impact Survey showed that 9 out of 10 clients recommend BrightStar to others.
Shelly Sun, co-founder and CEO of BrightStar Care, has received a good deal of media attention, which is never a bad thing for brand recognition (at least when it’s positive coverage). In 2009, she received the International Franchise Association’s Entrepreneur of the Year award, and in 2010 made an appearance on Undercover Boss, the popular CBS reality TV program.
Section II – Estimated Costs
- Please click here for detailed estimates of BrightStar Care franchise costs, based on Item 7 of the company’s 2015 FDD (updated).