BrightStar Care Franchise vs. A Place At Home Franchise: Which Is Right For You?

How BrightStar Care Franchise shapes up against A Place At Home

Deciding between a BrightStar Care franchise opportunity or another franchise, like A Place At Home, in the home care industry? We don’t blame you, as 10,000 people turn 65 every day. So, let us help you compare two franchises in this growing senior home care industry.

Side-By-Side Comparison

While many of BrightStar Care’s services overlap with A Place At Home, the main difference is that BrightStar Care uses a Registered Nurse (RN) for every client, even when the state doesn’t require it. This element is important to note because RNs cost more to employ.

Here’s a look at how the startup costs compare for the two franchises.

BrightStar Care A Place At Home
Franchise Fee $50,000 $49,500
Initial Investment $111,008 – $191,108 $84,185 to $148,517
Liquid Capital Requirement $100,000 – $150,000 $50,000
Royalty Fee 5.25% 4.5% -5.5%
Ad Royalty Fee The greater of $500 or 2.5% 1%
Franchise Growth 2020: 325 units
2022: 365 units		 2020: 13 units
2022: 20 units

Is BrightStar Care Franchise the Right Choice?

BrightStar Care opened in 2002, then began franchising in 2005, and as you can see, it has now grown to hundreds of locations across the country.

Owners can earn a variety of revenue streams. Locations can offer medical and non-medical services like in-home and companion care for seniors, medical staffing for facilities, and childcare. The company has two other franchises that run hand-in-hand with senior in-home care, BrightStar Senior Living and Bright Star Care Homes. These both offer assisted living and memory care living options for seniors. But, again, both will require medical professionals on staff and have their own initial investment costs.

BrightStar Introduces Call Option

The franchise system its now taking some heat in the press for introducing a call option. The call option gives the franchisor the power to buy back or terminate the franchise agreement at a predetermined price. That price could be less than the fair market value.

In addition to this call option being introduced, the president of the BOA told Franchise Times that Shelly Sun, the BrightStar founder, is talking with strategic partners that she would use the call option. For example, CVS recently announced it’s buying the home healthcare provider Signify. Shelly told Franchise Times that the call option is necessary for the brand to evolve.

The BOA president says many franchisees are trying to sell their agreements, which is decreasing value of the franchise itself. Others that have their livelihood in the franchise are concerned it could be ripped from them in the next couple of years.

While the franchise provides two weeks of initial training for owners and the director for your director of nursing, sales director, and branch manager, it’s very difficult to move past the idea that you could be investing in something that could be gone before you really get going.

Build More Than a Business with A Place At Home

A Place At Home prides itself on the family environment we’ve built. Other franchise owners are an extra layer of support you can lean on by joining the franchise family. However, that’s not all that makes us a unique franchise. We focus on non-medical care, which requires fewer hoops to jump through when opening compared to a medical franchise.

We guarantee our territories have enough clientele for you to thrive. All our base territories have approximately 40,000 people living in that area that are 65 years or older. That number increases every day!

Just like the BrightStar Care Franchise, we offer several home care revenue streams. As an A Place At Home owner, you can provide the following:

  • In-home senior care
  • Care coordination
  • Assistance in searching for senior living alternatives
  • Staffing solutions for senior care facilities

We have dedicated our time to perfecting a proven business model and training plan that can help our franchisees flourish. We built the CARE Track™ business process, which will take you from signing your franchise agreement to becoming a CARE Pro. A Place At Home guarantees that if you commit to CARE Track™ 100%, you will serve clients in the first 60 days post-launch. If not, you’ll have your first six months of royalty fees waived. That’s how confident we are in our business model.

Before that, you’re paired with a business coach. With their help, you’ll go through comprehensive sales, recruiting, and retention training. Then, you’ll attend 40 hours of in-person training to experience operation in action at our flagship location in Omaha, Nebraska. You’ll learn procedures, operations, and marketing during that in-person training. We won’t ever leave you hanging. After you open, we’ll reconvene on additional training if you’re still struggling to meet your KPIs.

Another benefit to our franchise is our de-escalating royalty structure. That’s right, the MORE money YOU make, the LESS money WE take.

While we are a young brand, opening in 2012 and franchising five years later, our commitment to supporting you and providing compassionate care pushes us above the rest. You can join us at a great time with immense growth potential.

Start the process of joining our family by submitting a franchise form.

Why Healthcare Startups Fail: Top 5 Reasons

Learn more about healthcare startups

According to Forbes, 90% of all startups fail. As for those in the healthcare and social assistance field, only about 57% make it past five years. Meanwhile, in the medical technology sector, upwards of 75% of U.S.-based, early-stage medtech companies never find success, according to TTi Health Research & Economics.

Learn the top reasons why healthcare startups fail so you can be prepared for the challenges that lie ahead when running your healthcare business. Get the insights. 

1. Running Out of Cash

Mismanagement of funds or failure to raise enough capital is the most common reason for any business, not just healthcare startups, to fold. A CB Insights study found that 38% of unsuccessful startups ran out of cash or failed to raise new capital. The healthcare industry is especially tough. Managing cash flow is challenging because the sales cycle in healthcare is particularly long.

One area where medical businesses lose funds is putting too much money and effort into pilot programs. Many companies underestimate the amount of effort required to have a successful pilot. You want to put the right amount of resources into the program to gain traction and revenue without going overboard. There’s a fine balance needed.

One way to skip the pilot programs is to invest in a franchise. A Place At Home allows seniors to age safely in their homes. We’ve already gone through the trials and tribulations that come with healthcare startups, so you don’t have to. Instead, you’ll receive our proven blueprint for building your own in-home senior care business.

2. Not Enough Market Demand

In that same CB Insights study, research showed 35% of startups fail because there isn’t enough market demand for their products or services. Although a medical technology company can have multiple potential paths for its product or service, they typically start with the one that the founder or CEO is most experienced in. But, this path might not be where the highest demand is. So, you should perform extensive research and determine which direction provides the best market size, competitive landscape, and highest potential for patient adoption.

3. Product or Service Doesn’t Fit Workflows

All jobs in the healthcare field are essential, making their workflow vital to saving lives and treating patients. You might think your new technology will make their lives easier, lower costs, or improve patient outcomes, but the adoption period might turn them away from using it. Facilities and offices usually have a well-established workflow model; anything that disrupts it could come with pushback.

4. Flawed Business Model

The CB Insights study found that nearly a fifth of all startups failed because of a flawed business model. The most common reasons a business model fails are because their profits and losses don’t add up or its story doesn’t make sense. This basically means that the company built the product or service on incorrect assumptions about the consumer. Or in other words, there’s no real market for the product or service.

5. Regulatory or Legal Issues

The medical field comes with lots of hoops to jump through. Some startups try to skip the regulatory approval process and go directly to the consumer. For some companies, it’s worked. But it leaves you hoping your customers are okay paying out-of-pocket for your health service or product. While the process can seem lengthy and expensive to go through, receiving federal approval, in the end, might help your business thrive.

Healthcare Startups vs. Medical Franchising

Concerned one of these five reasons might be what brings down your new healthcare business? Consider franchising. There are several medical franchising routes, from at-home care to urgent care centers or physical therapy offices. While the initial investment costs are higher than possibly a startup, you know there is already a demand because the brand is thriving in other locations. The franchise provides a proven business model, allowing you to get up and running efficiently. Good franchises will walk you through all the licensing and regulation steps to start a medical business. They already know the ins and outs, so take advantage of it.

Benefits of Homecare Business Vs. Medical Business

Forget the hassle of dealing with insurance companies and stricter regulations of medical businesses. Instead, learn how to start a home health agency like A Place At Home. The overhead costs and startup costs are kept lower for several reasons.

First, you don’t have to hire medical providers like doctors, mid-level practitioners, or nurses. Caregivers provide our clients with exceptional homecare. This factor keeps your staffing costs lower. Then, your professional liability insurance is lower because you’re not providing medical services. Lastly, since you’re not providing physical or occupational therapy to your clients, you’ll need fewer supplies, keeping overhead costs lower. So, you can provide your community with compassionate, senior-focused, and customized in-home services.

Ready to jump into the homecare industry? Submit a franchise form to get started.