factual

What applicable laws must a Brightstar Care franchisee comply with in their operations?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

You must comply with all wage and hour laws and regulations as well as all other federal, state, and local laws and regulations that apply to your operations, including those pertaining to the health care industry, professional and facility licensing, workers' compensation, corporate, tax, environmental, sanitation, insurance, no smoking, EEOC, OSHA, HIPAA, data privacy and similar laws (e.g., California Consumer Privacy Act), non-discrimination, employment, and sexual harassment laws. You must obtain and maintain any health care or employment-related permits, licenses, certifications, or other indications of authority necessary to operate your Agency, including, for example, a home health agency license, nurse staffing and/or employment agency license, and Joint Commission Accreditation. A Clinical Laboratory Improvement Amendment waiver ("CLIA" waiver) may need to be obtained and maintained if you are performing services requiring a CLIA waiver. Some jurisdictions may also require a Certificate of Need. Some states require you to obtain a license to provide employment services. We may require you to obtain a particular permit, license, or accreditation. Some states have imposed a moratorium on the issuance of home health agency licenses, nurse staffing licenses, and other in-home healthcare licenses or permits. You are responsible for investigating the availability of and requirements for obtaining all necessary licenses in your state and creating, as necessary, state-specific versions of required policies and procedures that meet or exceed BrightStar brand standards and Joint Commission requirements. You should investigate the availability of all required licenses before acquiring our franchise, as you cannot operate as a franchisee without them. If you are not able to obtain a newlyissued home health agency or other required license in your state, you might be able to acquire a previously-issued license from an existing provider in the state that no longer needs its license and is interested in selling its license to a third party. We cannot predict the costs of doing so.

We have resources available as a reference to you, but you are solely responsible for investigating, understanding, and complying with the laws, regulations, and requirements applicable to you and your Agency. Your Franchise Agreement prohibits you from participating in Medicare or other governmental payor programs, with the exception of programs funded by the United States Department of Veterans Affairs, Department of Veterans Health Administration (VA). You may

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 80–81)

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees must adhere to various federal, state, and local laws and regulations pertinent to their operations. These encompass a wide spectrum, including wage and hour laws, healthcare industry regulations, professional and facility licensing, workers' compensation, corporate tax, environmental standards, sanitation protocols, insurance requirements, no-smoking ordinances, EEOC guidelines, OSHA standards, HIPAA regulations, data privacy laws such as the California Consumer Privacy Act, non-discrimination laws, employment laws, and sexual harassment laws.

Brightstar Care franchisees are also responsible for securing and maintaining all necessary healthcare or employment-related permits, licenses, certifications, or other authorizations required to operate their agency. Examples include a home health agency license, nurse staffing and/or employment agency license, and Joint Commission Accreditation. Depending on the services offered, a Clinical Laboratory Improvement Amendment waiver (CLIA) may be necessary. Some jurisdictions may also require a Certificate of Need. Furthermore, certain states mandate a license to provide employment services. Brightstar Care may also require franchisees to obtain specific permits, licenses, or accreditations.

It is the franchisee's duty to investigate, understand, and comply with all applicable laws, regulations, and requirements. While Brightstar Care provides resources as a reference, the franchisee bears the ultimate responsibility for ensuring compliance. Franchisees should also be aware that some states have imposed a moratorium on issuing certain healthcare licenses or permits, which could impact their ability to operate. Franchisees in New York retain ongoing responsibility for compliance with all statutory and regulatory requirements, authority to hire or fire agency staff, control of the agency's books and records, and authority over the disposition of assets and the authority to incur liabilities on behalf of the agency.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.