What is the condition regarding default under the Franchise Agreement for Brightstar Care's agreement not to open company-owned Agencies within a franchisee's Protected Territory?

According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care will not open company-owned agencies using the Marks within a franchisee's protected territory if the franchisee is not in default under their Franchise Agreement. Similarly, Brightstar Care will not authorize any other party to open an agency using the Marks within a franchisee's protected territory if the franchisee is not in default under their Franchise Agreement.

This condition protects the franchisee's territory from direct competition from Brightstar Care or other franchisees, provided the franchisee remains in compliance with the Franchise Agreement. Defaulting on the Franchise Agreement removes this protection, potentially allowing Brightstar Care to establish company-owned agencies or authorize other franchisees within the original franchisee's territory.

This clause highlights the importance of adhering to the terms of the Franchise Agreement to maintain territorial exclusivity. A prospective franchisee should carefully review the Franchise Agreement to understand what constitutes a default and the potential consequences, including the loss of territorial protection.