To whom do I pay the Workers' Compensation fee for my Brightstar Care franchise?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ement of coverage.
While not currently in place, we may develop a Workers' Compensation Insurance Captive Plan. A "Captive" is a closely held insurance company whose insurance business is primarily supplied by and controlled by its owners and in which the original insureds are the principal beneficiaries. In a captive, the shareholders-insureds actively participate in decisions influencing underwriting and operations. Participation in the Workers' Compensation Insurance Captive Plan will be determined by specifically measured criteria on a location by location basis.
NOTE 7.
Source: Item 6 — OTHER FEES (FDD pages 17–34)
What This Means (2025 FDD)
According to the 2025 Brightstar Care FDD, the document does not explicitly state to whom a franchisee would pay a Workers' Compensation fee. However, the FDD does mention a potential Workers' Compensation Insurance Captive Plan that Brightstar Care may develop in the future.
The FDD states that if Brightstar Care implements this plan, it would be a closely held insurance company primarily supplied and controlled by its owners, with the original insureds as the principal beneficiaries. In this captive, the shareholders-insureds would actively participate in decisions influencing underwriting and operations. Participation in this plan would be determined by specific criteria on a location-by-location basis.
Currently, the FDD indicates that franchisees must obtain insurance coverage from agencies and carriers designated by Brightstar Care and that all insurance companies must carry an A.M. Best's rating of "A-/Excellent" or better, or be approved by BrightStar in writing before placement of coverage. Since the FDD does not specify where to pay the Workers' Compensation fee, it is important for a prospective franchisee to ask Brightstar Care directly about the current procedures for Workers' Compensation payments and whether the Captive Plan is in effect or is expected to be implemented soon.