When will Brightstar Care franchisees be billed for royalties?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
onthly Royalty Fee
You will be billed within 28 days of the end of each week for royalties. If you fail to meet any Monthly Performance Standard during the franchise term, you will be in default of your contractual obligations and will be billed, within 28 days of the end of each Monthly Performance period, an amount equal to the difference between the actual royalties you paid and the Minimum Monthly Royalty Payment (the "Minimum Monthly Royalty Fee"). The Minimum Monthly Royalty Payment is the royalty amount you must pay us on account of your operations during the previous month as though you had satisfied the Monthly Performance Standard for that month. You must pay us the Minimum Monthly Royalty Fee within 28 days from the invoice. We also have the right to terminate the Franchise Agreement if you fail to satisfy the Monthly Performance Standard more than 12 times during the franchise term (those 12 defaults need not occur in consecutive months), regardless of your payment of the Minimum Monthly Royalty Fee.
If you acquire the Agency operated under the Franchise Agreement as the result of a resale, your Monthly Performance Standards may (but need not) be established based on the actual historical performance of the Agency being acquired. For example, if the Agency being acquired has been open 3 years and has met its Year 2 Monthly Performance Standard, we may then set your Year 1 Monthly Performance Standard from the date of the transfer to the Year 3 Monthly Performance Standard for the Agency.
Source: Item 6 — OTHER FEES (FDD pages 17–34)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees will be billed for royalties 28 days after the end of each week. The weekly period runs from Monday through Sunday. These royalties are collected via Electronic Funds Transfer (EFT).
Brightstar Care calculates royalties based on a percentage of Net Billings, which includes all revenues and income derived from the Agency's business, whether received in cash, credit, or other forms. Net Billings also encompass proceeds from business interruption insurance. Excluded from Net Billings are sales taxes, other taxes collected from clients and paid to taxing authorities, and no mark-up items such as personal protective equipment, testing costs, or credit card fees where the amount billed to client is at the franchisee's cost.
In addition to regular royalties, Brightstar Care franchisees may also be subject to a Minimum Monthly Royalty Fee if they fail to meet the Monthly Performance Standard during the franchise term. This fee is the difference between the royalties actually paid and the amount that would have been paid if the franchisee had met the Monthly Performance Standard. Franchisees will be billed for the Minimum Monthly Royalty Fee within 28 days of the end of each Monthly Performance period and must pay it within 28 days from the invoice. Failing to meet the Monthly Performance Standard more than 12 times during the franchise term, even with payment of the Minimum Monthly Royalty Fee, can result in termination of the Franchise Agreement.