What is the estimated range for workers' compensation insurance costs 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 | 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 initial investment for workers' compensation insurance ranges from $445 to $3,300 for the first three months of operation. 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.
The FDD indicates that the cost of workers' compensation insurance is variable. It depends on the state in which the Brightstar Care territory is located and concurrent market conditions. This means franchisees in states with higher insurance costs or risk profiles can expect to pay more.
Prospective Brightstar Care franchisees should consider these variable costs and conduct thorough research into local market conditions and state regulations to estimate their potential workers' compensation expenses accurately. It would be prudent to consult with insurance brokers in their target territory to obtain quotes and understand the factors influencing these costs.