Can Brightstar Care engage in a Merger/Acquisition Activity with businesses that offer similar services within a franchisee's Protected Territory?

According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care retains the right to engage in Merger/Acquisition Activity with businesses or agencies of any kind under other systems and/or other marks, which businesses and agencies may offer, sell, operate or distribute and/or license others to offer, sell, operate and distribute goods and services through franchised or non-franchised businesses, at wholesale or retail, within and outside the Protected Territory.

This means that Brightstar Care can merge with or acquire other businesses, even those offering similar services, regardless of whether these businesses are located within a franchisee's protected territory. This clause protects Brightstar Care's ability to grow and evolve its business model, potentially through acquiring competitors or complementary businesses.

For a prospective franchisee, this reserved right represents a potential risk. While franchisees are granted a protected territory, Brightstar Care's ability to engage in mergers or acquisitions could introduce competition within that territory if the acquired business offers similar services. It is important for potential franchisees to understand this clause and assess the potential impact on their business before investing in a Brightstar Care franchise.