Key Takeaways
- The initial investment for a BrightStar Home Care franchise ranges from $112,459 to $231,538 while the franchise fee is $50,000.
- The combined average revenue for BrightStar Home Care franchisees in 2023 was $2,379,701.
- Online review sites claim that franchise owners typically earn between $100,000 to $300,000 annually.
- Senior Care Authority offers a more economical entry into the senior care industry with lower overhead costs.
BrightStar Home Care Franchise Overview
BrightStar Home Care was founded in 2002 by Shelly Sun and her husband in Gurnee, Illinois, driven by a personal experience in seeking quality care for a family member. After her grandmother’s passing, Shelly recognized the need for a reliable home healthcare service that could provide both medical and non-medical assistance.
The company began franchising in 2005 – since then, BrightStar Home Care has grown significantly, with over 360 locations operating as of 2023, providing various services including companion care, personal care, skilled nursing, and medical staffing for healthcare facilities.
| Franchise Attribute | Details |
| Incorporated Name | BrightStar Group Holdings Inc (it also owns BrightStar Senior Living franchise) |
| Corporate Address | 1125 Tri-State Pkwy., #700, Gurnee, IL 60031 |
| Number of Units | 397 |
| Term of Agreement | 10 years; renewable |
| Canada Franchises | Not available |
| International Franchises | Not available |
| Home-Based Franchise | No |
| Absentee Franchise | No, the owner must be involved in daily operations |
| Item 19 | Available, contact them for more information |
| Master Franchise Opportunity | No |
| Senior Care Authority: Leading Senior Care Franchise
Join the award-winning, recession-resistant Senior Care Authority franchise, established in 2009 in Sonoma, California. Our franchise network has earned a place in the Franchise 500 Ranking, reflecting our powerful reputation and reliability. We pride ourselves on achieving outstanding franchisee satisfaction, with 97% of our franchisees recommending our brand. We’re an approved franchise of the Small Business Administration (SBA). As a part of our network, you will deliver essential eldercare consulting services and benefit from a proven business model and a supportive community. |
BrightStar Home Care Franchise Initial Investment and Costs
Breakdown of the Initial Investment Required
Before you can be a BrightStar Home Care franchise owner, you must fulfill the following requirements:
- Have a minimum of $150,000 in liquid assets.
- Have at least one year’s worth of living expenses saved in the bank or secured through other income sources to cover your household needs.
The initial investment for a BrightStar Home Care franchise ranges from $112,459 to $231,538. This includes various costs such as the franchise fee, initial setup costs, training costs, and marketing expenses.
| Type of Expenditure | Minimum Investment | Maximum Investment | |
| Initial Franchise Fee | $50,000 | $50,000 | |
| Office Space | $4,000 | $9,600 | |
| Furnishings | $2,000 | $4,000 | |
| Computer Infrastructure Package | $4,000 | $9,500 | |
| Signage | $400 | $1,000 | |
| Utility Deposit | $300 | $500 | |
| Marketing | $500 | $500 | |
| Office Supplies, PPE, Medical Supplies | $600 | $730 | |
| Printing, Reproduction & Postage | $300 | $900 | |
| Business & Required Licenses | $200 | $8,633 | |
| State Licensure Assistance | $0 | $6,500 | |
| Local Marketing Spend | $3,000 | $5,250 | |
| Recruitment Spend | $3,495 | $6,385 | |
| State Electronic Visit Verification | $0 | $2,000 | |
| Director of Nursing | $0 | $6,192 | |
| Business Insurance | $1,700 | $5,000 | |
| Worker’s Comp Insurance | $445 | $3,800 | |
| Employee Travel | $4,990 | $10,200 | |
| Learning Management Software | $700 | $5,200 | |
| Legal Fees | $2,000 | $5,500 | |
| JC Accreditation | $0 | $6,192 | |
| Additional Funds (3 months) | $33,829 | $83,956 | |
| TOTAL | $112,459 | $231,538 |
Franchise Fee
The franchise fee for BrightStar Home Care is $50,000. This fee grants you the right to operate under the BrightStar Home Care brand and access their comprehensive support and training programs.
Royalty & Ongoing Fees
BrightStar Home Care franchisees are required to pay ongoing royalty fees, which are set at 5.25% of gross revenue. These fees help fund the support services provided by the franchisor, including continuous training, marketing support, and operational guidance. It’s important to account for these fees when planning your financial projections.
In addition to royalty fees, franchisees must contribute to an ongoing ad royalty fee. This fee is typically $500+ per month. The national marketing fund supports brand-wide advertising campaigns and promotional activities, which benefit all franchisees by increasing brand awareness and driving customer acquisition.
BrightStar Home Care Franchise Profit Margin
In the senior care industry, profit margins typically range from 10% to 20%. BrightStar Home Care franchisees can expect to fall within this range, depending on their ability to manage costs and optimize revenue streams. The average revenue for BrightStar Home Care franchisees is $2,379,701, which provides a solid foundation for achieving healthy profit margins.
- The combined average revenue of BrightStar Home Care (first locations only) that operated for all of 2023 is $2,379,701.
- The combined average revenue of BrightStar Home Care top quartile franchisees is $4,582,855.
Factors Affecting Profit Margins
- Operational Efficiency: Operational efficiency plays a significant role in determining profit margins. Efficient operations reduce waste, lower costs, and improve service quality. BrightStar Home Care provides extensive training and support to help franchisees streamline their operations and achieve optimal efficiency.
- Market Demand: Areas with a higher population of seniors or a growing demand for in-home care services offer greater revenue potential. BrightStar Home Care territories typically serve populations ranging from 200,000 to 300,000, with at least 15,000 residents aged 65 and older. They also provide Medium Density Market opportunities for areas with populations below 200,000 that still have a strong demand for their services.
- Competition: Competition in the local market can also affect profit margins. While BrightStar Home Care’s strong brand reputation and comprehensive service offerings provide a competitive edge, franchisees must continuously innovate and deliver exceptional care to stay ahead of competitors. Effective marketing and community engagement are essential for building a loyal customer base.
BrightStar Home Care territories available for future franchisees. At the time of writing, there are no territories available in Hawaii (not shown in the image above).
BrightStar Home Care Franchise Owner Salary
Online review sites like FinModelsLab claim that BrightStar Home Care franchise owners typically earn between $100,000 to $300,000 annually.
This range can vary based on the franchisee’s ability to grow their business, manage costs, and optimize revenue streams. Successful franchisees who effectively make use of the support and resources provided by BrightStar Home Care can achieve higher earnings.
BrightStar Home Care performance metrics that can indicate your potential earnings.
Factors Influencing Owner Salary
- Business Size and Revenue: Larger franchises with higher revenue generate more profit, which can translate to a higher salary for the owner. Expanding service offerings and increasing client acquisition can help grow the business and boost earnings.
- Operational Involvement: The level of operational involvement by the franchise owner can also impact their salary. Owners who take an active role in managing day-to-day operations, overseeing staff, and engaging with clients may achieve higher earnings compared to those who take a more hands-off approach. Active involvement can lead to better operational efficiency and higher customer satisfaction.
- Experience and Management Skills: Franchisees with a background in healthcare or business management may find it easier to handle the challenges of running a senior care franchise. Additionally, strong leadership and organizational skills can help franchisees build a competent team, deliver high-quality care, and achieve financial success.
Why Choose Senior Care Authority Instead?
| Franchise Attribute | BrightStar Home Care | Senior Care Authority, LLC |
| Type of Franchise | In-Home Medical & Non-Medical Healthcare Service | Eldercare Consulting and Senior Living Placement |
| Number of Units | 397 | 104 |
| Term of Agreement | 10 years; renewable | 10 years; renewable |
| Canada Franchises | Not available | Available |
| International Franchises | Not available | Not available |
| Investment Cost | $112,459 to $231,538 | $73,140 to $99,040 |
| Net Worth Requirement |
|
|
| Franchise Fee | $50,000 | $52,500 |
| Royalty Fee | 5.25% | 8% |
Table showing the differences between BrightStar Home Care and Senior Care Authority businesses.
While BrightStar Home Care is a robust franchise model with significant earning potential, Senior Care Authority presents a compelling alternative for those interested in the senior placement industry.
Our company was established in 2009 by Founder and CEO Frank Samson, with the first location in Sonoma County, California. Frank has previously grown a concierge travel-based franchise into a premier global brand with over 75 franchise owners. Leveraging his 20 years of experience in the franchise industry and a passion for assisting families and their aging loved ones, Frank identified a need in the senior care industry for a concierge approach to help families in challenging and stressful circumstances.
We provide an economical entry into the senior care industry, characterized by low overhead and the potential for a quick return on investment (ROI).
We have earned a place in the Franchise 500 Ranking, highlighting our success and esteemed reputation within the industry.
Unique Benefits and Features of Senior Care Authority
- Home-Based Business Model: Senior Care Authority operates as a low-cost, low-overhead franchise, allowing owners to work from home and maintain flexibility in their operations.
- Multiple Revenue Streams: Franchisees can generate income through various services, including senior placement, eldercare consulting, and specialized programs like the “Beyond Driving with Dignity” initiative.
- Territory Exclusivity: Each franchisee is granted an exclusive territory, minimizing competition and allowing them to focus on building strong relationships within their community.
- Comprehensive Training and Support: Franchisees receive extensive training, including one-on-one coaching and ongoing support from experienced professionals in the senior care industry.
- Proven Business Model: The franchise utilizes a well-established system that has been refined over the years, providing franchisees with a clear path to success.
- High Franchisee Satisfaction: A significant percentage of franchisees (97%) report they would invest in Senior Care Authority again, indicating a strong brand culture and satisfaction with the support provided.
97% of our franchisees would recommend our senior care franchise brand to another franchisee candidate since they enjoy being part of our brand family.
Comparing Senior Care Authority against BrightStar Home Care
Service Offerings
BrightStar Home Care provides a wide range of medical and non-medical services, including skilled nursing care and physical therapy. In contrast, Senior Care Authority is an eldercare consulting and senior living placement business that focuses on a concierge approach to senior care. Our specialized approach allows us to offer high-quality services that are personalized to individual needs.
Initial Investment and Ongoing Costs
The initial investment for a Senior Care Authority franchise ranges from $73,140 to $99,040, making it a more economical option compared to BrightStar Home Care’s initial investment range of $112,459 to $231,538. Additionally, Senior Care Authority’s lower overhead costs and streamlined business model contribute to a quicker return on investment.
Profit Margins and Owner Salary
Both franchises offer attractive profit margins, but the lower initial investment and operational costs of Senior Care Authority can result in higher net profits for franchisees. Senior Care Authority franchise owners can also benefit from our comprehensive support and training programs, which help maximize business performance and owner salary.
Choosing the right franchise is a critical decision that can impact your financial future. Both BrightStar Home Care and Senior Care Authority offer compelling opportunities in the senior care industry. However, Senior Care Authority’s economical entry, comprehensive support, and unique concierge approach make it a standout choice for those seeking a rewarding and profitable franchise experience.
Explore Senior Care Franchise Opportunities Today
Frequently Asked Questions (FAQ)
What is the total investment required for a BrightStar Home Care franchise?
The total investment required for a BrightStar Home Care franchise ranges from $112,459 to $231,538. This includes the franchise fee, initial setup costs, training expenses, and marketing costs.
How long does it take to break even?
The time it takes to break even can vary based on several factors, including market demand, operational efficiency, and competition. On average, franchisees can expect to break even within 18 to 24 months of operation.
What ongoing fees are associated with owning a BrightStar Home Care franchise?
In addition to the initial franchise fee, BrightStar Home Care franchises typically incur ongoing royalty fees based on a percentage of revenue. There may also be additional fees for marketing, technology support, and training programs. These fees contribute to ongoing support and brand development.
What support and training does BrightStar Home Care provide to franchise owners?
BrightStar Home Care offers comprehensive training programs covering areas such as business operations, marketing strategies, caregiver recruitment, and compliance with healthcare regulations. Franchise owners receive ongoing support through field visits, regional meetings, and access to a dedicated support team.
