What items are specifically excluded from Net Billings when calculating royalties for a Brightstar Care franchise?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Excluded from Net Billings are: (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. All Royalties will be collected via EFT 28 days after the end of the weekly billing period.
Source: Item 6 — OTHER FEES (FDD pages 17–34)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the royalty fees franchisees pay are based on a percentage of Net Billings. Net Billings is defined as the aggregate of all revenues and other income derived from the Agency's business, including proceeds from business interruption insurance. This encompasses all forms of payment, whether cash, credit, or other agreements, regardless of whether payment has been received or is ultimately collectible.
However, there are specific exclusions from Net Billings when calculating royalties for a Brightstar Care franchise. These exclusions include (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.
All royalties are collected via EFT 28 days after the end of the weekly billing period. This payment cycle is designed to align with the average time it takes for a franchisee to collect payment from clients, which is typically between 20 and 40 days, with private pay clients averaging around 14 days.