What is included in the single-performance obligation of providing the Brightstar Care franchise license?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
As part of each agreement, the Company identified one performance obligation that requires the Company to provide a combination of the following:
- Intellectual Property (IP) Licenses grant a non-exclusive right to establish and operate a medical staffing and home medical care services business under the trademarks and systems established as part of the BrightStar license during the term of the agreement.
- Marketing Services These services are ongoing local and national advertising programs that are implemented throughout the course of the contract term.
- Continuing Consulting Services These services include the review of plans and equipment and merchandise selection.
The Company determined that the services noted above represent a set of integrated or highly interrelated tasks/services and are, therefore, accounted for as a single-performance obligation of providing the franchise license.
In addition, the Company has also determined the following performance obligation is included in the contracts but is distinct from the above performance obligation:
Pre-Opening Services - These services provide primarily training programs, operating manuals, assistance in site selection, and setting up franchisee records.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 117)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the company identifies a single performance obligation within each franchise agreement. This obligation requires Brightstar Care to provide a combination of elements to the franchisee. These include granting Intellectual Property (IP) Licenses, providing Marketing Services, and offering Continuing Consulting Services.
The Intellectual Property Licenses give the franchisee a non-exclusive right to establish and operate a medical staffing and home medical care services business. This operation must be conducted under the trademarks and systems established as part of the BrightStar license, and this right is valid for the duration of the franchise agreement. The Marketing Services consist of ongoing local and national advertising programs that are implemented throughout the contract term, aimed at supporting the franchisee's business development. The Continuing Consulting Services involve the review of plans, equipment, and merchandise selection, providing franchisees with expert guidance to optimize their operations.
Brightstar Care has determined that these services are integrated and highly interrelated. Therefore, they are accounted for as a single-performance obligation of providing the franchise license. In addition to this single-performance obligation, Brightstar Care also includes pre-opening services in their contracts. These pre-opening services are distinct from the single-performance obligation and primarily consist of training programs, operating manuals, assistance in site selection, and setting up franchisee records.