When is the Minimum Monthly Royalty Fee due for Brightstar Care franchisees?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be billed within 28 days of the end of each week for royalties. If you fail to meet any Monthly Performance Standard during the franchise term, you will be in default of your contractual obligations and will be billed, within 28 days of the end of each Monthly Performance period, an amount equal to the difference between the actual royalties you paid and the Minimum Monthly Royalty Payment (the "Minimum Monthly Royalty Fee"). The Minimum Monthly Royalty Payment is the royalty amount you must pay us on account of your operations during the previous month as though you had satisfied the Monthly Performance Standard for that month. You must pay us the Minimum Monthly Royalty Fee within 28 days from the invoice. We also have the right to terminate the Franchise Agreement if you fail to satisfy the Monthly Performance Standard more than 12 times during the franchise term (those 12 defaults need not occur in consecutive months), regardless of your payment of the Minimum Monthly Royalty Fee.
Source: Item 6 — OTHER FEES (FDD pages 17–34)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, if a franchisee fails to meet the Monthly Performance Standard, they will be billed for the Minimum Monthly Royalty Fee. This fee represents the difference between the royalties actually paid and the amount that would have been paid if the Monthly Performance Standard had been met.
The Minimum Monthly Royalty Fee is due within 28 days from the date of the invoice. Brightstar Care also retains the right to terminate the Franchise Agreement if a franchisee fails to meet the Monthly Performance Standard more than 12 times during the franchise term, regardless of whether the Minimum Monthly Royalty Fee has been paid. These defaults do not need to occur in consecutive months.
This policy ensures that Brightstar Care receives a minimum royalty payment even if a franchisee's performance falls below expectations. It also incentivizes franchisees to meet the Monthly Performance Standards to avoid incurring additional fees and potential termination of the franchise agreement. Prospective franchisees should carefully consider the Monthly Performance Standards and their ability to meet them, as failure to do so can result in additional costs and potential loss of the franchise.