What criteria must a Brightstar Care agency meet to be included in Tables A, B, and C of Item 19?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
he date on which an agency has the ability to perform 50% or more of the BrightStar business model.
In some instances, franchisees operate more than one BrightStar agency. Except as stated below, the information contained in this Item 19 includes information as of December 31, 2024, for all BrightStar agencies operated by our franchisees and by our affiliates as company-owned agencies (if what are now company-owned agencies were previously operated by a franchisee during some portion of 2022, 2023, or 2024). If a franchisee or an affiliate operates more than one BrightStar agency in the same market, the information in Sections A, B, and C includes financial information only for the franchisee's or the affiliate's first agency unless the franchisee or the affiliate acquired what was a first agency from another franchisee (as described below).
In 2022, BrightStar offered incentives for approved franchisees to expand by acquiring other existing territories through the resale process or committing to develop additional new territories. We recognized that scale can benefit our well-established franchisees. In Sections A, B, and C, we also include any franchised agencies that previously were a franchisee's first franchised agency but have since been acquired by other franchisees or by our affiliates and are now considered a second or subsequent agency.
This Item 19 also includes financial information for our franchised agency resale transactions, i.e., transferred agencies. From 2006 through 2018, the date of transfer was defined as the date on which the new franchisee secured its license to operate the agency in the same manner as the selling franchisee. Beginning in 2019, the definition of the date of transfer changed to be the date on which the new franchisee and the selling franchisee execute the asset purchase agreement and the new franchisee executes its franchise agreement, even though the assets might not yet have transferred
if the new franchisee has not yet received its license to operate the agency in the same manner as it had been operated by the selling franchisee. The information disclosed for resale transactions depends on the amount of the agency's weekly Revenue as of the date of transfer. Specifically, if the franchised agency's weekly Revenue immediately before the date of transfer was less than $15,000 per week, any Revenue earned by the agency before the date of transfer was not included in the information contained in this Item 19.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 92–107)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, Item 19 includes financial performance representations based on data from Brightstar agencies. The criteria for inclusion in Tables A, B, and C vary, but generally focus on agencies that were the franchisee's first agency and were operational for a significant portion of the reported period. Specifically, the data includes information as of December 31, 2024.
For Sections A, B, and C, if a franchisee operates more than one Brightstar Care agency in the same market, the financial information includes data only from the franchisee's first agency, unless the franchisee acquired what was initially another franchisee's first agency. The FDD also states that agencies acquired by Brightstar Care's affiliates during 2022, 2023, and 2024 are included, even if they transitioned to company-owned units, with the note that their post-acquisition performance did not materially change compared to their pre-acquisition performance.
Specifically regarding Table A, the schedule contains 390 agencies, all of which were franchised at the beginning of 2022. Agencies that were the first franchised agency of a franchisee during any portion of 2022, 2023, or 2024 and subsequently acquired by Brightstar's affiliate during 2022, 2023, or 2024 are also included. For Table B, the information includes all agencies opened by franchisees as their first agency through 2024, even if they became a second agency in 2022, 2023, or 2024, and even if they are now owned as a company-owned unit, including all resale agencies, for the full year as of December 31, 2024, for agencies opened 12 months or longer as of December 31, 2024. For Table C, the schedule excludes two New York agencies in transition on change of ownership pending LHCSA licensure moratorium resolution.
These criteria are important for prospective franchisees to understand as they evaluate the financial performance data. The data primarily reflects the performance of first agencies, providing insight into the potential of a new Brightstar Care franchise. The inclusion of acquired agencies also offers a broader view of system performance, but it's crucial to recognize that these figures may not be directly comparable to a newly established franchise.