What is the definition of 'Monthly Performance Standard' in the context of the Brightstar Care franchise agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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If you are acquiring a franchise for a new Agency to be operated in a "standard" size territory, beginning the first 12 months of operations after your Minimum Start Date, your monthly performance must meet or exceed the Monthly Performance Standards appearing in the chart below. Your Minimum Start Date ("MSD") will be the Agency's Opening Date (defined as the earlier of the date of your first billing or 180 days after signing the Franchise Agreement). You are initially required to obtain whatever licensure may be required to perform Companion and Personal in-home care services in your state. In states where it may take longer than 180 days to obtain the license to perform those services, the Minimum Start Date will be the Monday following the receipt of licensure which enables you to perform Companion and Personal in-home care services. You must diligently and actively pursue all licenses to enable you to perform the fullest extent of the BrightStar business model. If you acquired the Agency as a result of a transfer, the Minimum Start Date will be the effective date of the transfer (and the applicable Monthly Performance Standards will be reflected in a Standard Resale Addendum to Franchise Agreement (Exhibit O) and will depend on your selling franchisee's actual performance before the transfer's effective date).
| MSD ANNIVERSARY YEAR | MONTHLY PERFORMANCE STANDARDS (based on 4-week month) (i.e., Minimum Net Billings) | ||
|---|---|---|---|
| Years 1 and 2 | No Minimum | ||
| Each of Years 3 & 4 | $60,000 | ||
| Each of Years 5-7 | $80,000* | ||
| Each of Years 8-10 | $100,000* | ||
| *Each of Years 11-15 | $120,000 | ||
| *Each of Years 16-20 | $150,000 | ||
| *Each of Years 21-25 | $175,000 |
- * Monthly Performance Standards for 5-week months will be $75,000 in years 3 & 4, $100,000 in years 5 through 7, and $125,000 in years 8 through 10. Weekly periods are Monday through Sunday. Only Net Billings from business within your protected territory, and Net Billings from National Accounts within and outside your protected territory, will count towards the Monthly Performance Standards.
- ** Years 11–15, 16-20, and 21-25 represent what the Monthly Performance Standards will be upon renewal of the franchise after the Initial Term (if you choose to renew or have the opportunity to renew). Monthly Performance Standards for 5-week months during each renewal term will be the sum of $30,000 (for each of the years 11-15), $37,500 (for each of the years 16-20), and $43,750 (for each of the years 21-25) plus the Monthly Performance Standard identified in the table above. Weekly periods are Monday through Sunday. Only Net Billings from business within your protected territory, and Net Billings from National Accounts within and outside your protected territory, will count towards the Monthly Performance Standards required to be eligible for consideration for renewal after the Initial Term.
Source: Item 6 — OTHER FEES (FDD pages 17–34)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the 'Monthly Performance Standards' are defined as minimum net billings that a franchisee must achieve, varying based on the territory size ('Standard' or 'Small') and the number of years since the Minimum Start Date (MSD) of the agency. For a 'Standard' territory, these standards begin in the first 12 months after the MSD, which is the earlier of the first billing date or 180 days after signing the Franchise Agreement, adjusted for licensing delays.
For a 'Standard' territory, the monthly performance standards increase over time. For example, in years 3 and 4, the standard is $60,000 for a 4-week month, increasing to $80,000 in years 5-7, and $100,000 in years 8-10. These standards continue to increase in subsequent renewal terms, reaching $120,000 in years 11-15, $150,000 in years 16-20, and $175,000 in years 21-25. For months with five weeks, the monthly performance standards are higher: $75,000 in years 3 & 4, $100,000 in years 5 through 7, and $125,000 in years 8 through 10.
If a Brightstar Care franchisee fails to meet the Monthly Performance Standard, they will be in default and must pay a Minimum Monthly Royalty Fee, which is the royalty amount that would have been paid had the standard been met. The franchisee is billed for this deficiency within 28 days of the end of the monthly performance period. Even if the Minimum Monthly Royalty Fee is paid, Brightstar Care has the right to terminate the Franchise Agreement if the franchisee fails to meet the Monthly Performance Standard more than 12 times during the franchise term, regardless of whether those defaults occur in consecutive months.
The FDD specifies that Net Billings from business within the protected territory count towards meeting the Monthly Performance Standards. For 'Small' territories, the standards are different, and for Medium Density Market territories, there are no Monthly Performance Standards. If the franchise is acquired through a resale, the Monthly Performance Standards may be based on the historical performance of the agency being acquired, as detailed in the Standard Resale Addendum to the Franchise Agreement.