Under what conditions will Brightstar Care charge an administrative fee related to insurance?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
s, will need access to any of our technology platforms; this fee is to pay a third party for its risk-assessment services and is due whether or not we approve the vendor.
4.8 Other Charges and Service Fees
You understand and agree that the BrightStar Care Agency Program is developing and that, in addition to those charges and fees set forth in this Agreement, there may be other charges and service fees that will be assessed to you by us, our affiliates, or third party vendors in connection with existing components of the BrightStar Care Agency Program or the addition of modified or new components to the BrightStar Care Agency Program. You agree to pay all such other charges and service fees in a timely manner. For example, we may charge an administrative fee to cover our costs in providing administrative services as part of any optional accounts receivable financing we arrange with lenders and make available to franchisees. For charges anticipated to be more than $25,000 per year, the addition of these charges and/or services fees will be agreed upon between
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the franchisor may charge franchisees an administrative fee to cover the costs of providing administrative services for optional accounts receivable financing arranged with lenders. This financing is made available to Brightstar Care franchisees.
This means that if a franchisee chooses to participate in an accounts receivable financing program that Brightstar Care arranges, they may incur an additional administrative fee to cover Brightstar Care's costs in managing this program. This fee is not related to general insurance requirements but specifically tied to the optional financing program.
For any new charges or service fees anticipated to be more than $25,000 per year, Brightstar Care will seek agreement from the franchisee, unless more than 75% of existing franchisees in the system have already adopted the charge. In that case, the franchisee must comply to ensure brand and system consistency.