factual

How are the general marketing fund fees calculated for a Brightstar Care franchise?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

ain minimum revenue level for the payment of these royalty fees in any given month, effective two years after the opening date.

  • General Marketing Fund Fees These fees are based on the greater of $500 per month or 2.5% of franchisee net billings to contribute to the local franchise and to the national brand advertis

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 117)

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees are required to pay general marketing fund (GMF) fees. These fees are calculated based on the greater of $500 per month or 2.5% of the franchisee's net billings. These fees contribute to both local franchise and national brand advertising activities, which are managed by Brightstar Care. The GMF fees are typically due monthly throughout the term of the franchise agreement.

For a prospective Brightstar Care franchisee, this means that each month they will need to calculate 2.5% of their net billings and compare it to $500. They will then pay whichever amount is higher. This ensures that even franchisees with lower billings contribute a minimum amount to the marketing fund, while those with higher billings contribute proportionally more. This structure aims to provide a consistent revenue stream for marketing efforts, benefiting all franchisees through increased brand awareness and customer acquisition.

The funds collected are used by Brightstar Care to direct advertising activities at both the local and national levels. This implies that franchisees may see direct benefits in their local markets from these marketing efforts, as well as broader brand recognition nationally. Franchisees should inquire about the specific allocation of these funds between local and national campaigns to understand how their contributions are being used and what kind of marketing support they can expect.

It's important for potential franchisees to factor this ongoing monthly expense into their financial projections. While 2.5% of net billings may seem manageable, it can become a significant cost as the business grows. Understanding how these funds are managed and what marketing strategies Brightstar Care employs is crucial for evaluating the potential return on this investment. Additionally, franchisees should confirm if there are any circumstances under which the GMF contribution rate or minimum amount could change during the term of their agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.