What is the estimated range for the total initial investment for a Brightstar Care franchise?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Column 1 | Column 2 | Column 3 | Column 4 | Column 4 |
|---|---|---|---|---|
| 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 with vendors | As per terms of invoice | Legal |
| See Note 16 | advisors | |||
| Joint Commission | $0 - $6,192 | As arranged with vendor | As per terms of invoice | Applicable authority |
| Accreditation | ||||
| Additional Operating | $53,829 -$83,956 | Lump sums | As needed | Various |
| Funds – 3 months See | ||||
| Notes 17 and 18 | ||||
| Total | $132,49 |
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 total initial investment ranges from $132,499 to $235,038. This investment covers various expenses incurred during the initial setup and operation of the franchise. These expenses include items such as state electronic visit verification, compensation for a Director of Nursing, different types of insurance, employee travel and living expenses for training, learning management software, legal fees, joint commission accreditation, and additional operating funds for the first three months.
The initial investment includes a broad range of expenditures necessary to launch the Brightstar Care business. For instance, the cost for State Electronic Visit Verification (EVV) can range from $0 to $2,000, while hiring a Director of Nursing (DON) might cost between $0 and $6,192, depending on state licensure requirements and whether a nurse needs to be identified on the license. Insurance costs, excluding workers' compensation, are estimated to be between $1,740 and $5,000 for the first three months. Workers' compensation insurance itself ranges from $445 to $3,300 for the same period. Employee travel and living expenses associated with training can vary from $4,990 to $10,200, depending on accommodation and travel preferences.
Additional costs include $700 to $5,200 for learning management software and $2,000 to $5,500 for legal fees. Joint Commission accreditation can range from $0 to $6,192. A significant portion of the initial investment is allocated to additional operating funds for the first three months, estimated at $53,829 to $83,956. These funds are intended to cover expenses until the business becomes self-sustaining. The FDD provides notes with additional details on each of these expenses, such as Note 12 regarding the Director of Nursing, Note 13 regarding insurance, and Note 17 regarding additional operating funds.
Prospective franchisees should carefully review each component of the initial investment to understand the potential costs involved in establishing a Brightstar Care franchise. The variability in costs, particularly for items like the Director of Nursing and insurance, highlights the importance of conducting thorough research and planning tailored to the specific location and operational model of the franchise. Understanding these costs is crucial for effective financial planning and ensuring the long-term success of the Brightstar Care franchise.