factual

What are the exceptions to the Brightstar Care operating requirement?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 13.3.9 Quality Control.

You fail to maintain the strict quality controls reasonably required by this Agreement and/or the Operations Manual.

  • 13.3.10 Licenses and Permits.

You fail to procure or maintain any licenses, certifications, or permits necessary to operate the Agency.

  • 13.3.11 Control Person.

You do any of the following: (i) at any time during the Initial Term the Agency is not under the designated Control Person's direct supervision, (ii) you designate a replacement Control Person without our prior approval and first giving us notice of the change, or (iii) any replacement Control Person does not meet our then-current Control Person standards and requirements, including (1) living within a one-hour drive-time from the Protected Territory, or (2) being in the office, or at minimum in the Protected Territory, on a daily full-time basis.

  • 13.3.12 Unauthorized Transfer.

You or your owners make a Transfer in violation of Section 12.

  • 13.3.13 Insurance. You fail to maintain insurance, to repay us for insurance we obtain for you, or otherwise to adhere to the requirements of Section 16.
  • 13.3.14 Misuse of the Licensed Marks or Confidential Information. You or your owners materially violate any requirement regarding or misuse the Licensed Marks or Confidential Information.
  • 13.3.15 Non-Use of Required Software and Systems. You fail to use all required software and systems in operating the Agency.
  • 13.3.16 Personal Protective Equipment. You fail to provide the types and quantities of personal protective equipment we require for the field staff of BrightStar Care Agencies and to ensure such personal protective equipment is used in compliance with current clinical guidance (whether such guidance is originally issued by us as part of the BrightStar Care Agency program or by external authorities).

13.4 Termination by Us With Notice and 30 Days' Opportunity to Cure

We have the right to terminate this Agreement if any of the following defaults remains uncured after expiration of the 30-day cure period:

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

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, there are several instances where failure to meet specific requirements can lead to termination of the franchise agreement. These exceptions cover various aspects of the business, including quality control, licensing, personnel management, and adherence to brand standards.

Specifically, Brightstar Care can terminate the agreement if a franchisee fails to maintain the quality controls required, or fails to procure and maintain the necessary licenses, certifications, and permits to operate the agency. Additionally, issues related to the designated Control Person, such as lack of direct supervision, unauthorized replacement, or failure to meet the required standards (like living within a one-hour drive-time or being present daily), can also lead to termination.

Further grounds for termination include unauthorized transfers of ownership, failure to maintain required insurance, misuse of licensed marks or confidential information, and failure to use required software and systems. Brightstar Care also mandates that franchisees provide the necessary personal protective equipment for field staff and ensure its proper use, in compliance with current clinical guidance.

These stipulations highlight the importance of adhering to Brightstar Care's operational standards and legal requirements. Franchisees must ensure they meet all outlined criteria to avoid potential termination of their franchise agreement. The 30-day cure period offers an opportunity to rectify any defaults, but consistent compliance is essential for maintaining a successful and stable Brightstar Care 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.