What was the total amount of Brightstar Care's capitalized software costs as of December 31, 2023?
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, the company's capitalized software costs as of December 31, 2023, totaled $2,071,727. These costs encompass expenses related to software developed or obtained for use in its franchise operations. These costs include salaries and compensation for employees and consultants working on projects that qualify 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 significantly in technology and software to support its franchise network. The capitalization and amortization of these costs suggest a long-term view of the value and utility of the software. Franchisees may benefit from these investments through improved operational efficiencies, better customer service, or enhanced data management capabilities. However, it's important to note that technology can become outdated, and future investments may be necessary to maintain a competitive edge.