In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a BrightStar Care franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a BrightStar Care franchise, based on Items 5 and 6 of the company’s 2023 FDD
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned BrightStar Care outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD
Section IV – News updates on the BrightStar Care franchise opportunity
Section V – Presentation and analysis of BrightStar Care’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 average revenue, displayed by quartile, earned by BrightStar Care franchisees and affiliates (first franchised agency only or agencies that were once first agency of another franchisee during 2022)
- 2022 average, median, high, and low gross margin percentage for BrightStar Care franchisees. Agencies that were the first franchised agency of a franchisee during any portion of 2022 and subsequently acquired by BrightStar Care’s affiliate during 2022 are also included.
- 2022 average, high, and low hours billed per client per week for all Brightstar first agencies, or former first agencies resold as secondary agencies in 2022, including all resale agencies, open and operating for at least 12 months as of December 31, 2022
- 2022 average weekly hours worked per employee, number of employees per week, and number of clients per week for the full year 2022
- 2022 average mix of business for all BrightStar Care franchised agencies in operation in 2022
- 2022 average revenue by payer source for all BrightStar Care franchised agencies in operation in 2022
- 2022 total national accounts revenue contributed to the system by the national accounts program for all BrightStar Care franchised agencies for the 2022 fiscal year; and the 2022 average, median, high, and low revenue per first agency, and average and median margin of national accounts, for first franchise agencies, or former first agencies resold as second agencies in 2022, open at least 12 months as of December 31, 2022
Section VI – Key ratios, comparables, computations, and analyses for the BrightStar Care franchise opportunity (exclusive content for Platinum subscribers)
Section I – BrightStar Care Franchise Costs
- BrightStar Care franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $50,000 for the first 200,000 to 300,000 in population in your Protected Territory. Plus $100 per each additional 1,000 people (pro rata) in the Protected Territory over 300,000; $25,000 for Medium Density Market (less than 200,000 in population)
- Leased Space for Agency: $3,600 to $9,600
- Utility Deposits: $300 to $500
- Furnishings: $2,000 to $4,000
- Computer Infrastructure: $4,000 to $9,500
- Signage: $400 to $1,000
- Marketing Materials (brochures, business cards, etc.): $500 plus shipping and handling
- Office Supplies, PPE, and Medical Supplies: $600 to $730
- Printing, Reproduction, and Postage: $300 to $900
- Business Licenses and Other Required License: $200 to $8,633
- State Licensure Assistance: $0 to $6,500
- Financial Acumen Training: $400 to $500
- Local Marketing Spend: $3,000 to $5,250
- Recruitment Spend: $3,000 to $5,250
- State Electronic Visit Verification (“EVV”): $0 to $1,000
- Director of Nursing (hired in advance of opening to meet licensure requirements, as needed): $0 to $6,192
- Insurance (excluding workers’ comp): $1,849 to $2,744
- Workers’ Comp Insurance: $445 to $3,809
- Employee Travel and Living Expenses Associated with Training: $4,990 to $10,200
- Legal Fees: $2,000 to $5,500
- Additional Operating Funds – 3 Months: $33,511 to $57,375
- Total Estimated BrightStar Care Franchise Costs: $111,095 to $195,875
Section II – BrightStar Care’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- BrightStar Care’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $25,000 to $50,000
- Royalty/Continuing Fee: franchisees signing BrightStar Care’s Franchise Agreement for a new Agency or renewing their existing franchises pay (i) 5.25% of monthly Net Billings generated from non-National Accounts and (ii) 6.25% of monthly Net Billings generated from National Accounts
- General Marketing Fee: franchisees signing BrightStar Care’s Franchise Agreement for a new Agency (including for a Medium Density Market Agency) or renewing their existing franchises pay, beginning on the Opening Date of the Agency, the greater of $500 per month or 2.5% of the prior month’s Net Billings
Section III – Number of Franchised and Company-Owned BrightStar Care Outlets
Franchised
2020
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.- Outlets at the Start of the Year: 313
- Outlets at the End of the Year: 329
- Net Change: +16
2021
- Outlets at the Start of the Year: 329
- Outlets at the End of the Year: 350
- Net Change: +21
2022
- Outlets at the Start of the Year: 350
- Outlets at the End of the Year: 348
- Net Change: -2
Company-Owned
2020
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 3
- Net Change: -3
2021
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
2022
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 20
- Net Change: +17
Section IV – News Updates on the BrightStar Care Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the BrightStar Care Franchise (Item 19, 2023 FDD)
- In 2022, BrightStar Care adjusted its expansion criteria to allow franchisees meeting specific standards to expand their territories by acquiring other existing territories through the resale process. BrightStar Care recognized that scale can benefit its well-established franchisees.
- In Parts 1, 2, and 3, BrightStar Care also includes any previous first franchised agencies that have been acquired by other franchisees or by its affiliate and are now considered secondary or subsequent agencies.
Part 1 – Franchisee and Affiliate-Owned Revenue (First Franchised Agency Only or Agencies That Were Once First Agency of Another Franchisee During 2022)
- In some instances, franchisees operate more than one BrightStar Care agency. Parts 1-3 include financial information only for the franchisee’s or the affiliate’s first agency unless the franchisee or affiliate acquired a first agency from another franchisee.
- This section illustrates the average revenue, displayed by quartile, earned by BrightStar Care franchisees for their first franchised agencies only, or earned by BrightStar Care franchisees or affiliates in connection with previous first franchised agencies acquired by them in 2022.
- For purposes of this financial performance representation, “Quartile” refers to the relative performance of the BrightStar Care Agencies. Specifically, “Quartile 1” refers to the top 25% of performing Agencies, “Quartile 2” refers to the next highest 25% of performing Agencies, “Quartile 3” refers to the next highest 25% of performing Agencies, and “Quartile 4” refers to the bottom 25% of performing Agencies.
2022 Average Revenue for Brightstar Agencies (Franchised and Affiliate-Owned) Open 12 Months or Longer
- System: $2,263,107
- Quartile 1: $4,475,870
- Quartile 2: $2,195,594
- Quartile 3: $1,585,901
- Quartile 4: $825,648
2022 Average Revenue for Brightstar Agencies (Franchised and Affiliate-Owned) Open 24 Months or Longer
- System: $2,347,827
- Quartile 1: $4,557,258
- Quartile 2: $2,248,260
- Quartile 3: $1,635,164
- Quartile 4: $950,627
2022 Average Revenue for Franchised Agencies Open 12 Months or Longer
- System: $2,281,706
- Quartile 1: $4,516,121
- Quartile 2: $2,217,938
- Quartile 3: $1,591,982
- Quartile 4: $832,292
2022 Average Revenue for Franchised Agencies Open 24 Months or Longer
- System: $2,369,303
- Quartile 1: $4,598,601
- Quartile 2: $2,275,404
- Quartile 3: $1,641,397
- Quartile 4: $961,808
First Year Average Revenue: $430,079
Second Year Average Revenue: $969,190
Third Year Average Revenue: $1,237,772
Fourth Year Average Revenue: $1,478,508
Fifth Year Average Revenue: $1,672,987
Sixth Year Average Revenue: $1,811,770
Seventh Year Average Revenue: $1,956,158
Eighth Year Average Revenue: $2,011,080
Ninth Year Average Revenue: $2,131,964
Tenth Year Average Revenue: $2,273,997
Eleventh Year Average Revenue: $2,507,033
Twelfth Year Average Revenue: $2,558,662
Thirteenth Year Average Revenue: $2,903,881
Fourteenth Year Average Revenue: $3,105,759
Fifteenth Year Average Revenue: $3,219,309
Part 2 – Franchisee Margins (First Franchised Agency Only or Agencies That Were Once First Agency of Another Franchisee During 2022)
- The following section identifies the Gross Margin Percentage of BrightStar Care franchisees. Agencies that were the first franchised agency of a franchisee during any portion of 2022 and subsequently acquired by BrightStar Care’s affiliate during 2022 are also included.
- Gross Margin Percentage is defined as Gross Margin divided by Revenues. Gross Margin is defined as Revenues less Cost of Goods Sold. Cost of Goods Sold includes all direct and indirect costs related to field employees including payroll, payroll taxes, benefits, screening costs, workers’ comp insurance, crime bond costs, professional and general liability insurance.
- BrightStar Care uses a 20.0% average load onto known payroll costs to estimate COGS. The 20.0% is based on the franchise system average estimates.
- The information contained below includes information for all agencies opened by franchisees as their first agency through 2021, even if they became a second agency in 2022 (regardless of how long the agencies were in operation during the particular year), including all resale agencies, for the full year as of December 31, 2022, for agencies opened 12 months or longer as of December 31, 2022.
- Average Gross Margin Percentage: 41.9%
- Median Gross Margin Percentage: 40.8%
- High Margin: 69.5%
- Low Margin: 25.6%
- Number of Agencies: 187
- Number and Percentage of Agencies That Attained or Exceeded Average Amount: 72 (39%)
Part 3 – Data Analysis of Client and Employee Statistics (First Agency Only)
A. Hours Billed Per Client Per Week
- The information below reflects the average, median, high, and low hours billed per client per week during calendar year 2022 for all Brightstar first agencies, or former first agencies resold as secondary agencies in 2022, including all resale agencies, open and operating for at least 12 months as of December 31, 2022.
- Average Hours Billed Per Week: 26.8
- Median Hours Billed Per Week: 24.2
- High Per Week: 145.4
- Low Per Week: 3.9
- Number of Agencies: 184
- Number and Percentage of Agencies That Attained or Exceeded Average Amount: 81 (44%)
B. Number of Clients and Employees Serviced Per Agency
- The information below reflects the average weekly hours worked per employee; average number of employees worked per week; and average number of clients per week for the full year 2022.
- The information below contains information for all Brightstar Care first agencies, or former first agencies resold as secondary agencies in 2022, for all ongoing clients for agencies open and operating 12 months or longer as of December 31, 2022.
Average Weekly Revenue: $0 to $5,000
- Average Weekly Hours Per Employee: 13.2
- Average Weekly Employees: 5.0
- Average Weekly Customer Count: 5.1
Average Weekly Revenue: $5,000 to $10,000
- Average Weekly Hours Per Employee: 22.6
- Average Weekly Employees: 11.9
- Average Weekly Customer Count: 12.6
Average Weekly Revenue: $10,000 to $20,000
- Average Weekly Hours Per Employee: 21.2
- Average Weekly Employees: 19.8
- Average Weekly Customer Count: 22.9
Average Weekly Revenue: $20,000 to $30,000
- Average Weekly Hours Per Employee: 22.6
- Average Weekly Employees: 31.3
- Average Weekly Customer Count: 31.1
Average Weekly Revenue: $30,000 to $40,000
- Average Weekly Hours Per Employee: 20.9
- Average Weekly Employees: 39.6
- Average Weekly Customer Count: 42.0
Average Weekly Revenue: $40,000 to $50,000
- Average Weekly Hours Per Employee: 24.9
- Average Weekly Employees: 49.4
- Average Weekly Customer Count: 48.7
Average Weekly Revenue: $50,000 to $60,000
- Average Weekly Hours Per Employee: 21.9
- Average Weekly Employees: 61.5
- Average Weekly Customer Count: 55.9
Average Weekly Revenue: $60,000 to $75,000
- Average Weekly Hours Per Employee: 22.9
- Average Weekly Employees: 66.0
- Average Weekly Customer Count: 56.5
Average Weekly Revenue: Over $75,000
- Average Weekly Hours Per Employee: 26.4
- Average Weekly Employees: 102.8
- Average Weekly Customer Count: 97.3
Part 4 – Franchisee Mix of Business
- The section below provides information for the 2022 fiscal year by line of business and includes billed revenue from the ABS operating system for all BrightStar Care agencies in operation in 2022, regardless of whether (i) the agency was a franchisee’s or affiliate’s first, second, or subsequent BrightStar Care agency, or (ii) the agency operated during the entire 12-month period.
- An agency’s mix of business consists of 4 lines of business: Personal Care, Companion Care/Child Care, Skilled Services, and Staffing.
- Personal Care services are primarily provided by specially trained Certified Nursing Assistants and Home Health Aides. They help patients with activities of daily living and other medical healthcare needs under the direct supervision of a Registered Nurse (RN) or Licensed Practical Nurse (LPN).
- Companion Care/Child Care services are primarily provided by caregivers who provide care and comfort and basic chores such as medication reminders, light housekeeping, errands, and meal prep like Certified Nursing Assistants, but without the medical assistance.
- Skilled Services are medical services provided by skilled professionals like nurses, physical therapists, or other licensed medical professionals. This type of care must be provided per the signed Licensed Provider’s order and skilled plan of care.
- Staffing includes a variety of staffing done either in a facility or in a patient’s home under a staffing contract where a third party is directing the plan of care. There are various types of staffing, including but not limited to per diem/shift, direct placement, visit, companion care, personal care, and skilled care.
- Number of Agencies: 361
- Personal Care: 46.5%
- Skilled Services: 32.1%
- Companion Care/Child Care: 4.6%
- Subtotal: 83.2%
- Staffing: 16.8%
- Total: 100.0%
Part 5 – Payer Sources
- The table below provides information for the 2022 fiscal year by payer source. The table below includes all agencies in operation during 2022, regardless of whether: (i) the agency was the franchisee’s or affiliate’s first, second, or subsequent BrightStar Care agency, or (ii) the agency operated during the entire 12-month period.
- Self Pay – Private Individual: 42.4%
- National Account: 15.9%
- Medicaid: 10.6%
- Local Contract Amount: 9.0%
- Self Pay – Business/Facility: 6.9%
- Veterans Administration: 5.7%
- Long-Term Care Insurance: 1.3%
- Other: 8.4%
- Total: 100.0%
Part 6 – National Accounts
- Beginning in August 2007, BrightStar Care made a concerted effort to seek out and establish contracts that were national in scope to increase the Revenues of its franchisees (“National Account Contracts”).
- Total System-Wide National Accounts Revenue (all agencies open as of December 31, 2022): $179,756,225
- Average Revenue Per First Agency: $608,834
- Median Revenue Per First Agency: $398,123
- High Revenue Per First Agency: $6,641,254
- Low Revenue Per First Agency: $623
- Number and Percentage of First Franchisee Agencies That Attained or Exceeded Average: 66 (35.3%)
- Average Margin of National Accounts: 46.2%
- Median Margin of National Accounts: 44.2%
Section VI – BrightStar Care Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.
Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.
Gain
the Insider Information (and Actual Earnings Data) You Need to Make a
Safe and Smart Franchise Investment - See more at:
https://www.franchisechatter.com/register/#sthash.le7wKJKM.dpuf
The Best of Franchise Chatter
🥇The Most Profitable Franchises of 2026
🥈Franchises Ranked by Average Revenues
🥉Franchises Ranked by Average Profits
🏆Franchise Winners, Survivors & Losers
Subscribe Now or Log In
Franchise Chatter is reader-supported. We may receive a commission for leads generated from affiliate links and banners on our site.
Leave a Reply