Can Brightstar Care establish or license others to establish franchised or company-owned agencies outside of my Protected Territory, regardless of their proximity to my territory?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
We retain all rights that are not expressly granted to you under the Franchise Agreement. The license granted to you under the Franchise Agreement does not include (i) any right to offer any product or service via e-commerce; (ii) any right to establish an independent website or to establish an URL incorporating the Marks or any variation of the Marks or the names or likeness of any of our or our affiliates' executives or employees; or (iii) any right to distribute, market, or implement our products and services in any channel of distribution or other manner not specifically authorized in the Franchise Agreement. Further, we may, among other things, on any terms and conditions we deem advisable, without compensation to any franchisee and without granting you any other rights:
- (i) Establish and/or license others to establish franchised or company-owned Agencies at any location outside the Protected Territory regardless of the proximity of such agencies to your Protected Territory.
- (ii) Grant permission to you to service clients within another franchisee's protected territory if the franchisee does not have the proper licensure or accreditation to provide services (or chooses not to provide services) and grant permission to other franchisees or company-owned locations to service clients within your Protected Territory if you do not have the proper licensure or accreditation to provide services (or choose to not provide services).
- (iii) Offer, sell, operate or distribute and/or license others to offer, sell, operate and distribute through franchised or non-franchised businesses, at wholesale or retail, within and outside the Protected Territory, (a) BrightStar branded goods and services not then offered and sold through the BrightStar Care Agency Program, or (b) goods and services under another brand. These goods and services may be offered and sold through similar or dissimilar channels or methods of distribution, including the Internet and outlets that do business under the BrightStar name or another name. Examples of these outlets include durable medical equipment centers, assisted living facilities, care homes, adult daycare and/or child daycare facilities, therapy centers, Medicare home health agencies, and hospices, and businesses that are not in the healthcare industry. We or our affiliate may expand
Source: Item 12 — TERRITORY (FDD pages 67–75)
What This Means (2025 FDD)
According to the 2025 Brightstar Care Franchise Disclosure Document, Brightstar Care retains the right to establish or license others to establish franchised or company-owned agencies at any location outside a franchisee's Protected Territory. This can occur regardless of how close these agencies are to the franchisee's Protected Territory. This means that while franchisees are granted a Protected Territory, Brightstar Care can still operate or allow others to operate Brightstar Care agencies nearby.
This policy could create competition for a Brightstar Care franchisee from other Brightstar Care agencies, even if those agencies are company-owned or franchised by someone else. The franchisee's ability to grow their business could be impacted by the presence of these other agencies. The FDD also states that Brightstar Care may offer or sell BrightStar branded goods and services not offered through the BrightStar Care Agency Program, or goods and services under another brand, through other franchised or non-franchised businesses within or outside the Protected Territory. These goods and services may be offered through similar or dissimilar channels, including the Internet and outlets that do business under the BrightStar name or another name.
This lack of exclusive territorial rights is a common practice in franchising, but it's important for prospective franchisees to understand the potential for competition. Brightstar Care franchisees should consider the implications of this policy on their business plan and revenue projections. It would be prudent for a potential franchisee to discuss with Brightstar Care how they manage potential conflicts between franchisees and what support they offer to help franchisees compete effectively in their market.