factual

Can Brightstar Care designate an account as a National Accounts customer at any time?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

Periodically designate National Accounts. We have the exclusive right to negotiate (iv) and enter into agreements or approve forms of agreements providing supplemental healthcare staff or healthcare and homecare services to institutional clients and comprehensive care to any business which owns, manages, controls, services or otherwise has responsibility for services in more than one protected territory of our franchisees, regardless of the aggregate contract amount of the services you want to perform (a "National Accounts Customer"). We may designate an account as a National Accounts customer, in our sole discretion at any time, and our determination will be final and binding. Upon completion of your initial training, you must sign up for all National Accounts business and service any National Accounts business we refer to you in accordance with the terms of the National Accounts contract and the guidelines contained in the Operations Manual, including any service requirements based upon National Accounts gross margin percentages contained in the Operations Manual. You may not solicit business from, provide services to, or negotiate rates directly with any National Accounts customer without our express prior authorization, which consent will not be unreasonably withheld. The restrictions in this section (iv) apply anywhere, including within your Protected Territory.

Source: Item 12 — TERRITORY (FDD pages 67–75)

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care has the authority to designate an account as a National Accounts customer at any time, and this decision is entirely at their discretion. This determination by Brightstar Care is considered final and binding for the franchisee. A National Accounts customer is defined as any business that owns, manages, controls, services, or has responsibility for services in more than one protected territory of Brightstar Care franchisees.

For a prospective franchisee, this means that Brightstar Care can at any point designate one of their existing clients, or a potential client, as a National Account. If this happens, the franchisee may be required to service this client under the terms of the National Accounts contract and guidelines, which could impact their revenue and operational procedures. The franchisee cannot directly solicit or negotiate rates with any National Accounts customer without express prior authorization from Brightstar Care.

This policy has several implications for franchisees. First, it restricts the franchisee's ability to independently pursue and manage large, multi-territory accounts. Second, it mandates participation in the National Accounts program, potentially affecting the franchisee's business strategy and revenue streams. Finally, it emphasizes Brightstar Care's control over key client relationships and service agreements, which is a common practice in many franchise systems to maintain brand consistency and service standards across multiple locations.

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.