According to the Brightstar Care franchise agreement, who is included in the definition of 'you'?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
tStar Care Agency," or "Franchised Business"); and
WHEREAS, we are engaged in the business of granting franchises to operate BrightStar Agencies; and
WHEREAS, you desire to enter into an agreement with us to obtain the rights to operate a BrightStar Care Agency (or "Franchised Business") using the System developed by us, our principal, and our affiliates, including standardized methods, guidelines and procedures for providing domestic care services, and the operation of a medical staffing services agency, the Athena Business System; sales techniques, marketing, advertising, and staffing management systems; and procedures for operation and management of a BrightStar Care Agency in the manner set forth in this Agreement and in the Operations Manual we provide and modify from time to time (the "BrightStar System" or "System"); and
WHEREAS, we and our franchisees use various trade names, trademarks and service marks including, without limitation, the service mark "BrightStar" in connection with the BrightStar System (the "Licensed Marks"); and
WHEREAS, we and our affiliates have developed and maintain an integrated management system providing various technology solutions, including: client relationship management, staff relationship management, billing management, web management (www.brightstarcare.com), franchise management and all modifications thereto that may be made from time to time (the "Athena Business System" or "ABS"); and
WHEREAS, you have applied to us for a franchise to operate an Agency using the BrightStar System and ABS and such application has been approved in reliance upon all of the representations made therein;
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the definition of "you" in the franchise agreement refers to the prospective franchisee who desires to enter into an agreement with Brightstar Care to obtain the rights to operate a BrightStar Care Agency. This includes using the System developed by Brightstar Care, its principal, and affiliates. The system incorporates standardized methods, guidelines, and procedures for providing domestic care services, operating a medical staffing services agency, and utilizing the Athena Business System. It also encompasses sales techniques, marketing, advertising, and staffing management systems, as well as procedures for the overall operation and management of a BrightStar Care Agency.
This definition is crucial because it establishes the franchisee as the party responsible for adhering to the terms of the franchise agreement and the standards and specifications set by Brightstar Care. The franchisee's application for a franchise is approved based on the representations made within that application, further solidifying their commitment to the agreement. By acknowledging and agreeing to the terms, the franchisee commits to operating their agency in accordance with the BrightStar System and maintaining the standards essential for the brand's reputation and operational consistency.
The agreement emphasizes that the franchisee must operate the BrightStar Care Agency using the System and Licensed Marks within a defined protected territory. The franchisee is granted the right to establish and operate one BrightStar Care Agency under the terms and conditions outlined in the agreement. However, Brightstar Care retains the right to modify the BrightStar System, and the franchisee must comply with these changes, including offering new products or services and accepting new sources of reimbursement. This ensures that the franchisee remains aligned with the evolving standards and offerings of the Brightstar Care franchise.
Furthermore, the agreement specifies that referral sources are not exclusive, but all clients serviced must be within the franchisee's Protected Territory. The franchisee cannot conduct staffing business outside their Protected Territory without prior written permission from Brightstar Care. This territorial limitation ensures that each franchisee has a defined market area to focus on, while also preventing conflicts and maintaining the integrity of the franchise system. The franchisee's adherence to these terms is essential for the successful operation of their agency and the overall success of the Brightstar Care franchise system.