What was the fixed rent expense for Brightstar Care in 2024?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fiscal year ended | 2024 | 2023 | |
|---|---|---|---|
| Operating lease cost: | |||
| Fixed rent expense | $194,658 | $482,686 | |
| Short-term lease costs | 344,340 | 269,466 | |
| Net Lease Cost | $538,998 | $752,152 |
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the fixed rent expense for the fiscal year ended 2024 was $194,658. This figure represents the cost associated with fixed rent obligations for Brightstar Care during that period.
For a prospective franchisee, understanding the fixed rent expense is crucial for financial planning. It provides insight into the company's overhead costs and can help franchisees estimate their potential expenses. Fixed rent is a consistent cost, unlike variable expenses, making it easier to budget for.
It's also useful to compare the 2024 fixed rent expense to the 2023 figure, which was $482,686. The decrease in fixed rent expense from 2023 to 2024 could be due to various factors, such as renegotiated lease terms, a change in the number or location of leased properties, or a change in accounting practices. A potential franchisee should inquire about the reasons for this significant change to better understand the company's financial management and future cost expectations.
Additionally, the FDD lists short-term lease costs and net lease costs for both years. Short-term lease costs were $344,340 in 2024 and $269,466 in 2023, while net lease costs totaled $538,998 in 2024 and $752,152 in 2023. These figures provide a more comprehensive view of Brightstar Care's overall leasing expenses and can help franchisees assess the company's financial health and stability.