What is the consequence of failing to close books on the required financial software for Brightstar Care?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
tions 680-695.
- The following language is added as Section 6.18 of the Franchise Agreement:
Franchisee's responsibilities under New York Law are in no way lessened by entering into the Franchise Agreement. Notwithstanding any provision to the contrary in the Franchise Agreement, Franchisee retains:
- (i) ongoing responsibility and full legal authority over the operation and management of the Agency;
- (ii) ongoing responsibility for compliance with all statutory and regulatory requirements;
- (iii) authority to hire or fire Agency staff;
- (iv) control of the Agency's books and records;
- (v) authority over the disposition of assets and the authority to incur liabilities on behalf of the Agency.
By entering into the Franchise Agreement, Franchisee has agreed to adopt and utilize the policies and procedures Franchisor has developed. Notwithstanding the foregoing, Franchisee retains the right and authority to adopt, amend, enforce, and implement policies and procedures regarding the operation of the Agency in order to ensure compliance with applicable licensing or permitting requirements.
5.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–92)
What This Means (2025 FDD)
Based on the 2025 Brightstar Care Franchise Disclosure Document, the consequences of failing to close the books on the required financial software are not explicitly detailed. However, the FDD does state that franchisees in New York retain control of the agency's books and records, and must adopt and utilize the policies and procedures BrightStar has developed.
While the FDD excerpts do not specify penalties for non-compliance with financial software procedures, it is reasonable to assume that Brightstar Care has established protocols for ensuring financial accountability. These protocols likely include requirements for accurate and timely financial reporting, which would necessitate proper use of the designated financial software. Failure to adhere to these protocols could potentially lead to warnings, mandated training, or further disciplinary actions as outlined in the franchise agreement.
Prospective Brightstar Care franchisees should inquire directly with the franchisor about the specific requirements for using the financial software, the procedures for closing the books, and the potential consequences of failing to meet these requirements. Understanding these expectations is crucial for maintaining compliance and avoiding potential issues with the franchisor.