For Brightstar Care, what items are specifically excluded from the calculation of "Net Billings"?

According to Brightstar Care's 2025 Franchise Disclosure Document, "Net Billings" is a key figure used to calculate royalty and marketing fees. For Brightstar Care franchisees, understanding what is excluded from this calculation is crucial for financial planning and accurately determining these ongoing fees.

The following items are excluded from the calculation of Net Billings: (i) sales taxes and other taxes separately stated that you collect from clients and pay to taxing authorities; and (ii) 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 practical terms, this means that Brightstar Care franchisees do not pay royalties or marketing fees on sales taxes they collect on behalf of the government. Additionally, franchisees do not pay these fees on the cost of items like personal protective equipment, testing, or credit card fees when these costs are passed directly to the client without any markup. This exclusion can help to reduce the overall royalty and marketing fee burden on the franchisee, especially in situations where these pass-through costs are significant.