exception

Does Brightstar Care consider the provision of services to National Accounts customers by Brightstar Care, its affiliates, or other franchisees within a franchisee's Protected Territory a violation of territorial exclusivity?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 1.6.9 Neither the direct provision by us or an affiliate (or a franchisee, licensee, or agent of ours) of services to National Accounts customers as authorized in Section 1.6.7(a) above, nor our contracting with another party to provide such services as authorized in Section 1.6.7(b) above, will constitute a violation of this Section 1.6 relating to territorial exclusivity, even if such services are delivered from a location within the Protected Territory. You disclaim any compensation or consideration for work performed by others in the Protected Territory pursuant to this Section 1.6.

Source: Item 22 — CONTRACTS (FDD pages 117–118)

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, the direct provision of services to National Accounts customers by Brightstar Care, its affiliates, or other franchisees does not constitute a violation of a franchisee's territorial exclusivity, even if those services are delivered from within the franchisee's protected territory. Brightstar Care retains the right to negotiate and enter into agreements to provide services to National Accounts customers, including those within a franchisee's protected territory.

This means that while a Brightstar Care franchisee is granted a protected territory, this protection does not extend to National Accounts. Brightstar Care, its affiliates, or other franchisees can service these National Accounts within a franchisee's territory without it being considered a breach of the franchise agreement. The franchisee is not entitled to compensation for work performed by others within their protected territory related to National Accounts.

This policy has significant implications for prospective franchisees. While franchisees are typically required to sign up to receive National Accounts business and service any National Accounts referred to them, they do not have exclusive rights to these accounts within their territory. This could impact a franchisee's potential revenue and market share, as Brightstar Care retains the right to manage these accounts independently. Prospective franchisees should carefully consider the potential impact of National Accounts on their business and discuss this policy in detail with Brightstar Care before investing in a franchise.

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.