What is Brightstar Care's commitment regarding company-owned Agencies within a franchisee's Protected Territory?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
We assign you a specific geographic area ("Protected Territory") within which we agree not to (i) open company-owned Agencies using the Marks if you are not in default under your Franchise Agreement, or (ii) authorize any other party to open an Agency using the Marks if you are not in default under your Franchise Agreement. We will designate the boundaries of your Protected Territory by zip codes.
Source: Item 12 — TERRITORY (FDD pages 67–75)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees are granted a Protected Territory, within which Brightstar Care agrees not to open company-owned Agencies using the Brightstar Care marks, provided the franchisee is not in default under their Franchise Agreement. This means that as long as a franchisee is meeting their obligations, Brightstar Care will not directly compete with them by establishing a company-owned agency within their designated territory. The boundaries of the Protected Territory are defined by zip codes.
However, this protection is not absolute. Brightstar Care retains significant rights, including the right to establish or license others to establish franchised or company-owned Agencies at any location outside the Protected Territory, regardless of proximity. This implies that while a franchisee is protected from direct company-owned competition within their territory, Brightstar Care can still operate or franchise competing locations nearby.
Additionally, Brightstar Care can grant permission to other franchisees or company-owned locations to service clients within a franchisee's Protected Territory if the franchisee does not have the proper licensure or accreditation to provide services, or chooses not to provide those services. This exception highlights the importance of franchisees maintaining the necessary qualifications and service offerings to meet client needs within their territory. Brightstar Care also retains the right to offer and sell BrightStar branded goods and services not offered through the BrightStar Care Agency Program, or goods and services under another brand, within or outside the Protected Territory, through various channels, including the Internet.