Can Brightstar Care or its affiliates be the sole approved supplier for certain items?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.8.1 We, our affiliate, and/or a third party may be one of several, or the only, approved supplier of any item. You will pay the then-current price in effect for the items you buy from us or our affiliate. In some instances, the costs for the items you purchase from us or our affiliate may be higher than the cost of other or similar supplies and products on the market.
- 6.8.2 Except for those instances where we have designated a single source as noted in Section 6.8.1, if you wish to purchase any unapproved item and/or acquire approved items from an unapproved supplier, you must provide us the name, address and telephone number of the proposed supplier, a description of the item you wish to purchase, and purchase price of the item, if known. At our request, you must provide us, for testing purposes, a sample of the item you wish to purchase. Nothing in the foregoing will be construed to require us to approve any particular supplier. We may base our approval on considerations relating not only directly to the item or supplier itself, but also indirectly to the uniformity, efficiency, and quality of operation we deem necessary or desirable in our System as a whole. Nothing requires us to approve an unreasonable number of suppliers for a given item, which approval might, in our judgment, result in higher costs or prevent the effective or economical supervision of approved suppliers. We may revoke our approval of particular products or suppliers when we determine that such products or suppliers no longer meet our standards. Upon receiving written notice of such revocation, you must cease purchasing products from such supplier. You must use products purchased from approved suppliers solely in connection with operating your Agency and not for any competitive business purpose.
- 6.8.3 We periodically may establish business relationships with suppliers who may produce, among other things, certain signs, medical supplies, technology, and marketing programs according to our proprietary standards and specifications or private label goods which we have authorized and prescribed for sale by System franchisees ("System Suppliers"). You recognize that such products are essential to operating the Franchised Business and to the System generally. Your failure to pay System Suppliers may interfere with such suppliers' willingness to supply the System, which may result in other System franchisees' inability to obtain product or ability to obtain product only on less favorable credit terms. Accordingly, you agree to pay System Suppliers as and when due.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care, its affiliates, or a third party may be the sole approved supplier for certain items. As a franchisee, you are required to pay the current price for items purchased from Brightstar Care or its affiliates. The FDD notes that the costs for these items may be higher than similar supplies and products available on the market.
If a franchisee wishes to purchase unapproved items or acquire approved items from an unapproved supplier, they must provide Brightstar Care with the supplier's information and a description of the item, including its price. Brightstar Care may also request a sample for testing purposes. However, Brightstar Care is not obligated to approve any particular supplier and may base its approval on factors related to the uniformity, efficiency, and quality of operations within the Brightstar Care system.
Brightstar Care is not required to approve an unreasonable number of suppliers for a given item if it believes that doing so might result in higher costs or prevent effective supervision of approved suppliers. Brightstar Care can also revoke approval of particular products or suppliers if they no longer meet the company's standards, and franchisees must cease purchasing from such suppliers upon written notice. Franchisees are required to use products purchased from approved suppliers solely for operating their Brightstar Care Agency and not for any competitive business purpose.
Brightstar Care may establish business relationships with suppliers who produce items such as signs, medical supplies, technology, and marketing programs according to Brightstar Care's proprietary standards. These products are considered essential to operating the franchised business and the Brightstar Care system. Franchisees are obligated to pay these System Suppliers as and when due, as failure to do so may interfere with the suppliers' willingness to supply the system.