What was the total revenue from royalty fees for Brightstar Care in the provided financial statement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Liabilities and Member's Equity | $ 24,448,204 | $ 30,346,609 |
Consolidated Statements of Income
| Revenues Royalty fees General marketing fund fees System fees Initial franchisee fees Other | $ | 36,830,410 13,476,528 5,044,124 610,231 807,476 | $ | 34,071,726 12,833,485 4,370,553 370,235 904,997 |
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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 revenue from royalty fees totaled $36,830,410. This figure represents the income Brightstar Care received from its franchisees for the use of its brand name, systems, and ongoing support during the reported period. Royalty fees are a primary revenue stream for franchisors like Brightstar Care, as franchisees are typically required to pay a percentage of their gross sales as royalties.
For a prospective Brightstar Care franchisee, understanding the royalty fee structure is crucial. This financial statement provides insight into the magnitude of royalty payments made by all franchisees collectively. While this document does not detail the specific royalty rate or calculation method, it demonstrates the overall financial significance of these fees to Brightstar Care's revenue.
It is important to note that this figure reflects the total royalty revenue across the entire Brightstar Care franchise system. Individual franchisees will contribute to this total based on their own sales performance and the agreed-upon royalty terms in their franchise agreements. Reviewing the specific royalty obligations outlined in the franchise agreement is essential for any potential franchisee to accurately forecast their own expenses and profitability.