When are royalties collected from Brightstar Care franchisees after the end of their weekly billing period?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
0 and 40 days. As noted below, royalties are collected 28 days after the end of a franchisee's weekly billing period. As a result, the royalty payment cycle generally matches the average time it takes for a franchisee to collect payment from its clients.
If you enter into the Expansion Option Agreement, all income or revenue generated in the Expansion Territory will be treated as Net Billings and be subject to the same conditions and obligations in the Franchise Agreement, including all Royalty/Continuing Fee obligations.
Source: Item 6 — OTHER FEES (FDD pages 17–34)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, royalties are collected 28 days after the end of a franchisee's weekly billing period. The document specifies that all royalties will be collected via Electronic Funds Transfer (EFT). The weekly billing period runs from Monday through Sunday.
This 28-day collection period is designed to align with the average time it takes a Brightstar Care franchisee to receive payment from their clients. The FDD notes that the majority of private pay clients remit payment in approximately 14 days, and the system-wide blended days' sales outstanding ranges between 20 and 40 days.
In addition to standard royalties, Brightstar Care franchisees may also be subject to a Minimum Monthly Royalty Fee if they fail to meet the Monthly Performance Standard during the franchise term. If a franchisee does not meet the standard, they will be billed the difference between the royalties paid and the Minimum Monthly Royalty Payment within 28 days of the end of each Monthly Performance period. This Minimum Monthly Royalty Fee must also be paid within 28 days from the invoice date.