For Brightstar Care, what is included in the definition of "Net Billings"?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
6.2 Licensure Requirements
After signing this Agreement, you must diligently and actively pursue all licenses to enable you to perform staffing, companion, and personal care services and open within 180 days after signing this Agreement. Once you achieve $15,000/week in weekly Net Billings (although we make no representation how long this will take or whether it will occur), you are required to apply for licensure to enable you to perform the fullest extent of the BrightStar busines
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
I am unable to provide a definition of "Net Billings" for Brightstar Care using the provided excerpts from the 2025 Franchise Disclosure Document. While the term "Net Billings" is mentioned in the context of reaching a certain weekly billing amount ($15,000/week) to trigger requirements like Joint Commission Accreditation and skilled licensure, the FDD excerpts do not specify exactly what constitutes "Net Billings".
Without a clear definition in the FDD, it is not possible to determine which revenue streams are included or excluded from the calculation of Net Billings. For example, it is unclear whether Net Billings includes revenue from all service lines (staffing, companion, personal care), or if it accounts for deductions such as discounts, bad debt, or insurance adjustments.
A prospective Brightstar Care franchisee should ask the franchisor for a precise definition of "Net Billings", including specific examples of what is included and excluded. Understanding this definition is crucial for accurately forecasting revenue, determining when certain contractual obligations are triggered, and assessing the overall financial performance of the franchise.