What was the total amount of Brightstar Care's capitalized software costs as of December 29, 2024?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
tify any impairment of its property and equipment at December 29, 2024 or December 31, 2023.
Internally Developed Software
The Company capitalizes certain costs of software developed or obtained for use of its franchises. Capitalized software costs consist of salaries and related compensation costs of employees and consultants for certain projects that qualify for capitalization. The capitalized software costs are amortized on a straight-line basis over the expected useful lives, which are gene
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 117)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, as of December 29, 2024, the company had capitalized $2,575,001 in internally developed software costs. These costs primarily consist of salaries and related compensation for employees and consultants working on software projects that meet the criteria for capitalization.
Brightstar Care amortizes these capitalized software costs using the straight-line method over the expected useful lives of the software, which is generally 60 months. This means that the cost is evenly spread out over five years.
For a prospective franchisee, this indicates that Brightstar Care invests in technology and software development to support its franchise system. The capitalization and amortization of these costs reflect the company's accounting practices for managing these assets. Franchisees may benefit from the software developed, but they should also be aware that the value of these assets is being depreciated over time.