How are the Brightstar Care General Marketing Fund fees calculated?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
s recognized over time using an input measure of progress based upon when the service is performed.
General Marketing Fund
The General Marketing Fund (GMF) funds received from the franchisees are recognized as revenue over time at the greater of the actual GMF fees earned or the contract monthly minimum each month, and marketing expenses are recognized when incurred within the Company's consolidated statements of income. GMF income was $13,745,282 and $13,476,528 for the years ended December 29, 2024 and December 31, 2023, respectively, and is included within the consolidated statements of income. GMF expense was $12,903,956 and $12,493,237 for the
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 117)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the General Marketing Fund (GMF) fees received from franchisees are recognized as revenue over time. Specifically, Brightstar Care recognizes revenue at the greater of the actual GMF fees earned or the contract monthly minimum each month. This means that Brightstar Care assesses the GMF fees each month and compares the actual amount earned to a predetermined minimum. The higher of the two amounts is then recognized as revenue.
For a prospective Brightstar Care franchisee, this means that they will be contributing to the General Marketing Fund, and the amount recognized as revenue by Brightstar Care will be the higher of the actual fees earned or a contractually agreed-upon minimum. This ensures a consistent revenue stream for the GMF, which is used for marketing activities. The GMF income was $13,745,282 for the year ended December 29, 2024, and $13,476,528 for the year ended December 31, 2023.
Brightstar Care also incurs marketing expenses, which are recognized when they occur within the company's consolidated statements of income. GMF expense was $12,903,956 for the year ended December 29, 2024, and $12,493,237 for the year ended December 31, 2023. This indicates that the marketing expenses are tracked and reported separately, providing transparency in how the GMF funds are utilized. Franchisees should be aware of both the income and expenses related to the GMF to understand how their contributions are being used to support the Brightstar Care brand.