What is the estimated range for the cost of Workers' Compensation insurance for a Brightstar Care franchise?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| State Electronic Visit Verification (“EVV”) See Note 11 | $0 – $2,000 | Drafted monthly from your bank account via EFT. | Per terms of invoice | BrightStar Technology or other Approved vendor |
| Director of Nursing hired in advance of opening to meet licensure requirements, as needed. See Note 12 | $0 – $6,192 | Directly to Consultant / Director of Nursing | As per terms of invoice | Director of Nursing |
| Insurance (excluding workers comp) See Note 13 | $1,740 – $5,000 | Directly to approved supplier as per supplier’s invoice | As per terms of invoice | Approved vendor |
| Workers’ Comp Insurance See Note 14 | $445 – $3,300 | Directly to approved supplier as per supplier’s invoice | As per terms of invoice | Approved vendor |
| Employee Travel and Living Expenses Associated with Training See Note 15 | $4,990 – $10,200 | As arranged with vendors | As per terms of purchase | Various suppliers |
| Learning Management Software | $700 - $5,200 | Directly to approved supplier as per supplier’s invoice | As per terms of purchase | Approved vendor |
| Legal Fees | $2,000 – $5,500 | As arranged | As per terms | Legal |
| See Note 16 | with vendors | of invoice | advisors | |
| Joint Commission | $0 – $6,192 | As arranged | As per terms | Applicable |
| Accreditation | with vendor | of invoice | authority | |
| Additional Operating | $53,829 -$83,956 | Lump sums | As needed | Various |
| Funds – 3 months See | ||||
| Notes 17 and 18 | ||||
| Total | $132,499 -$235,038 |
NOTE 14. Workers' Comp Insurance. The estimate in the table above represents your estimated workers' comp for the first 3 months you operate your Agency. Your estimated yearly workers comp costs during year 1 will range from $1,800 - $10,000 subject to audit at the end of the policy term and variable depending on the state in which your territory is located and concurrent market conditions.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 34–41)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the estimated cost for Workers' Compensation insurance for the first three months of operation ranges from $445 to $3,300. Note 14 clarifies that the estimated yearly workers' compensation costs during the first year will range from $1,800 to $10,000. These costs are subject to audit at the end of the policy term and can vary depending on the state in which the territory is located and current market conditions.
This means a prospective Brightstar Care franchisee should budget for these initial insurance expenses as part of their startup costs. The FDD indicates that these payments are made directly to an approved supplier as per the supplier's invoice. It is important to note that the final cost of workers' compensation insurance can fluctuate based on factors specific to the franchisee's location and the prevailing insurance market.
Given the variability in workers' compensation costs, a Brightstar Care franchisee should obtain quotes from multiple insurance providers to ensure they are getting competitive rates. Understanding the specific requirements and regulations for workers' compensation in their state is also crucial. The potential for an audit at the end of the policy term highlights the importance of maintaining accurate records and complying with all insurance requirements to avoid unexpected costs.
While the initial investment table provides an estimate, franchisees should recognize that actual costs may differ. Therefore, thorough research and careful planning are essential to manage this aspect of the business effectively. This is typical for franchise systems, as insurance costs are highly variable based on local factors.