What are the consequences if a Brightstar Care franchisee fails to maintain the required licenses, certifications, or permits?

According to Brightstar Care's 2025 Franchise Disclosure Document, failing to procure or maintain necessary licenses, certifications, or permits to operate the agency constitutes a breach of the franchise agreement. Specifically, if a Brightstar Care franchisee fails to maintain the required licenses, certifications, or permits necessary to operate the agency, Brightstar Care has the right to terminate the agreement. However, Brightstar Care must first provide the franchisee with a 30-day period to correct the deficiency.

This requirement to maintain licenses and certifications is further emphasized in the context of Joint Commission Accreditation. Once a Brightstar Care agency reaches $15,000 per week in Net Billings or has been open for one year (whichever comes first), the franchisee must apply for Joint Commission Accreditation. Within six months of applying, the franchisee must obtain this accreditation, as well as any licensure that enables them to perform the full BrightStar Care business model. The franchisee is obligated to maintain these licenses and the Joint Commission Accreditation in good standing throughout the initial term of the agreement, which includes paying all associated dues and fees on time.

The need for proper licensure is also highlighted during the initial stages of the franchise agreement. After signing the agreement, the franchisee must actively pursue all licenses necessary to perform staffing, companion, and personal care services, and must open within 180 days. Furthermore, once the franchisee achieves $15,000 per week in weekly Net Billings, they are required to apply for licensure to perform the fullest extent of the BrightStar business model, unless prohibited by state regulations. If state regulations change, allowing the franchisee to obtain a skilled license, they must take immediate action to do so as soon as possible.

In summary, maintaining all required licenses, certifications, and permits is critical for a Brightstar Care franchisee. Failure to do so not only risks termination of the franchise agreement after a 30-day cure period but also indicates a failure to meet the brand's operational standards and legal obligations. Prospective franchisees should carefully review all licensure requirements and ensure they can meet these obligations to avoid potential penalties and maintain a successful Brightstar Care franchise.