Under what conditions will a Brightstar Care franchisee be billed a Minimum Monthly Royalty Fee?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be billed within 28 days of the end of each week for royalties. If you fail to meet any Monthly Performance Standard during the franchise term, you will be in default of your contractual obligations and will be billed, within 28 days of the end of each Monthly Performance period, an amount equal to the difference between the actual royalties you paid and the Minimum Monthly Royalty Payment (the "Minimum Monthly Royalty Fee"). The Minimum Monthly Royalty Payment is the royalty amount you must pay us on account of your operations during the previous month as though you had satisfied the Monthly Performance Standard for that month. You must pay us the Minimum Monthly Royalty Fee within 28 days from the invoice. We also have the right to terminate the Franchise Agreement if you fail to satisfy the Monthly Performance Standard more than 12 times during the franchise term (those 12 defaults need not occur in consecutive months), regardless of your payment of the Minimum Monthly Royalty Fee.
Source: Item 6 — OTHER FEES (FDD pages 17–34)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee will be billed a Minimum Monthly Royalty Fee if they fail to meet the Monthly Performance Standard during the franchise term. This fee is the difference between the royalties actually paid and the amount that would have been paid if the franchisee had met the Monthly Performance Standard for that month.
Brightstar Care franchisees are billed for royalties within 28 days of the end of each week. If a franchisee does not meet the Monthly Performance Standard, they will be billed the Minimum Monthly Royalty Fee within 28 days of the end of the Monthly Performance period. The Minimum Monthly Royalty Payment is calculated as the royalty amount that would have been due if the franchisee had satisfied the Monthly Performance Standard for that month.
It is important to note that Brightstar Care has the right to terminate the Franchise Agreement if a franchisee fails to satisfy the Monthly Performance Standard more than 12 times during the franchise term, regardless of whether the franchisee pays the Minimum Monthly Royalty Fee. These 12 defaults do not need to occur in consecutive months. This policy underscores the importance of meeting the Monthly Performance Standards to maintain the franchise agreement.