BrightStar Care Franchise Costs, Fees & FDD

Year Business Began: 2002

Franchising Since: 2005

Headquarters: Bannockburn, Illinois

Estimated Number of Units: 410

Franchise Description: BrightStar Franchising, LLC is the franchisor. Franchisees will operate an agency providing comprehensive non-medical and/or medical care to national account clients or home care clients within their home or residence as well as supplemental healthcare staff to institutional clients. Institutional clients include facilities like hospitals, nursing homes, and clinics.
Training Overview: The BrightStar Care training program, known as Boot Camp, has four training tracks: (1) new owner track, (2) sales track, (3) clinical track, and (4) operations track. All tracks include both on-line components and instructor-led classroom-based sessions held in Lake County, Illinois. The New Owner Training track is designed to incrementally build franchisees’ (as new franchise owners) knowledge and skill around the BrightStar Care operations, sales, and clinical business processes and compliance. This track includes two or three, 3-4-day sessions (no more than 12 days total) and is held at the franchisor’s headquarters or a nearby training/conference center. Between the training sessions, franchisees may also spend up to a week in the office of an owner. The sales, clinical, and operations training tracks are designed specifically for the three key roles in the business: (1) salesperson, (2) director of nursing, and (3) branch manager/director of operations (if role not assumed by the franchisee). These three key staff are required to attend and successfully complete their respective three to four-day training track sessions within 180 days after signing the Franchise Agreement. Franchisees may also be required to spend up to a week in the office of another franchise owner within 180 days after signing the Franchise Agreement and prior to opening. The franchisor may hold an annual conference for all franchisees at a location it selects. Additionally, the franchisor may hold a Branch Leadership Conference. If held, the franchisor does require certain branch managers/operations managers, directors of nursing, and hired salesperson(s) to attend. The conference will last no more than three business days.

Territory Granted: Franchisees will operate their agency from a location which the franchisor approves. The franchisor assigns franchisees a specific geographic area (protected territory) within which it agrees not to (i) open franchisor-owned agencies using the marks, or (ii) authorize any other party to open an agency using the marks, if franchisees are not in default under their Franchise Agreement. The franchisor will designate the boundaries of the protected territory by zip codes. A protected territory typically includes a population of 200,000 to 300,000 people with a minimum of 15,000 in population 65 years of age and older. If a protected territory has a population over 300,000, franchisees must pay $100 per each additional 1,000 people (pro rata) in the protected territory over 300,000.

Obligations and Restrictions: The agency at all times be under the designated control person’s direct supervision. The “control person” is the individual who has the authority to actively direct the agency’s business affairs, is responsible for overseeing the agency’s general management, and has authority to sign all contracts. Franchisees (or, if the franchisee an entity, the owner) must be the control person during the first two years the agency is open and operating under the franchisee’s ownership and they must seek the franchisor’s approval if they want the control person to be someone else during the franchise term. Franchisees may hire a branch manager/operations manager to assist their control person with the day-to-day operation. If franchisees hire a branch manager, he/she must successfully complete all of the required training programs. Franchisees may only sell goods and services that are authorized by the franchisor. Franchisees must offer all goods and services that the franchisor prescribes for the franchise and accept all sources of reimbursement the franchisor specifies.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees have the option to renew the franchise for three additional renewal terms, each of which will be five years long if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$50,000 for the first 200,000 – 300,000 in population in the 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	$4,000	$9,600
Utility Deposits	$300	$500
Furnishings	$2,000	$4,000
Computer Infrastructure Package	$4,000	$9,500
Signage	$400	$5,000
Marketing Materials (brochures, business cards, etc. plus shipping and handling)	$500	$500
Office Supplies, PPE, and Medical Supplies	$600	$730
Printing, Reproduction & Postage	$300	$900
Business Licenses and Other Required Licenses	$200	$8,633
State Licensure Assistance	$0	$6,500
Local Advertising Spend	$3,000	$5,250
Recruitment Spend	$3,495	$6,385
State Electronic Visit Verification (EVV)	$0	$2,000
Director of Nursing (hired in advance of opening to meet licensure requirements, as needed)	$0	$6,192
Insurance (excluding workers comp)	$1,740	$5,000
Worker’s Comp Insurance	$445	$3,300
Employee Travel and Living Expenses Associated with Training	$4,990	$10,200
Learning Management Software	$700	$5,200
Legal Fees	$2,000	$5,500
Joint Commission Accreditation	$0	$6,192
Additional Operating Funds – 3 months	$53,829	$83,956
ESTIMATED TOTAL	$132,499	$235,038

 
Other Fees

Type of Fee	Amount
Royalty/Continuing Fee	Franchisees signing the Franchise Agreement or 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. Monthly standards and a potential minimum monthly royalty fee apply.
General Marketing Fee	Franchisees signing the Franchise Agreement or for a new agency 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.
Monthly Athena Business System and Email Service Fee	Beginning on the opening date of the agency, franchisees will pay the higher of $250 per month or .83% of the prior month’s net billings.
Microsoft Teams Enterprise and Office 365 E1 Package (optional)	$14.50 monthly for Teams Enterprise with Office 365 E1 (subject to change upon written notice).
Multi-Factor Authentication Security License	For each ABS user the franchisor establishes and maintains for the franchisee’s agency, the franchisee will pay up to $5 per account per month for a Multi-factor Authentication Security License (subject to change upon written notice).
State Electronic Visit Verification (EVV)	Up to $1,000 one-time set-up fee and up to $.50 per record transmitted on the franchisee’s behalf.
State EVV Late Notice Fee	Up to an additional $1,000 if franchisees provide less than 90 days’ notice to set up their ABS record(s) to integrate with their state’s EVV requirements.
State EVV Version Upgrade Fee	$500 per EVV version upgrade required by the franchisee’s state. Franchisees must submit the changes no less than 90 days before their state’s effective date of the required change.
State EVV Version Upgrade Late Notice Fee	Up to additional $500 per each EVV version upgrade submitted less than 90 days before the franchisee’s state’s effective date of the required change.
Additional Training to be Provided on an as Needed Basis	$100-$200/day per attendee for group training programs plus travel to Bannockburn, IL or regional training location. $300-$400/day per attendee for advanced training. On-site training available on a resource available basis at a cost of $500-$600 per day per trainer, plus room, board, and travel for each trainer.
Annual Conference and Up to Two Branch Leadership Conference, if any	Franchisees are solely responsible for all travel, room, board and salary expense. The franchisor may charge a registration fee to cover speakers, meals, and activities up to $2,500 per person for the annual conference and up to $2,000 per person for Branch Leadership Conference, and up to $500 per person for each virtual Branch Leadership Conference.
Insurance (excluding workers comp)	$6,400 - $12,000 for the first year of operation.
Worker’s Comp Insurance	$1,800 - $10,000 for the first year of operation, subject to audit based on actual payrolls incurred during the policy term.
Renewal Fee	$5,000
Transfer Fee	$15,000 (pro-rata if transfer is less than 100%).
Termination Damages	Varies.
Reimbursement for Customer Complaints	The franchisor has the right to require franchisees to reimburse its costs if the franchisor resolves a customer complaint because the franchisee fails to do so.
Indemnification and Defense	All costs including attorneys’ fees; amount will vary under circumstances.
Cost and Attorneys’ Fees	Will vary under circumstances.
Examination/Audit of Franchisee’s Records	Depending on circumstances (including the franchisee’s cooperation), but estimated examination expense is $5,000 to $35,000 (including the franchisor’s reasonable accounting, legal fees and travel expenses), plus full amount of any underpayment and interest and late charges on any underpayment.
Late Fees	Highest applicable legal rate for open account business credit not to exceed 1.5% per month.
Tax Reimbursement	Out-of-pocket cost reimbursement.
Vendor Evaluation Fee	Up to $5,000 if the vendor is approved.
Other Charges and Service Fees	Varies depending on changes in the BrightStar Care Agency Program, but there are limitations on charges anticipated to be more than $25,000 per year (exceptions apply).
Cross-Territorial Policy Payment	Varies, although currently the payment may be as much as the full gross margin (less royalties, ABS-related fees, and general marketing fees) for each client.

The above information has been compiled from the FDD of BrightStar Care. Year of FDD: 2025.
Franchise Direct's Disclaimer