Following the termination of a Brightstar Care Franchise Agreement, what obligations does the Business Associate have regarding Protected Health Information (PHI)?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.1 Term. The term of this Agreement will commence upon receipt by Business Associate of any PHI or the date set forth below, whichever is earlier, and will terminate upon discharge of Business Associate's obligations under the Franchise Agreement and this Agreement, including the obligations set forth in Section 6.2 below, and/or performance of the Services.
- 6.2 Effects of Termination. Covered Entity acknowledges that due to the relationship with Business Associate, it will not be feasible for Business Associate to return or destroy PHI after the termination of the Franchise Agreement. Business Associate will continue extend the protections of this Agreement to PHI and limit further Uses and Disclosures of such PHI to those purposes that make the return or destruction infeasible or contrary to the Privacy Laws, for so long as Business Associate maintains such PHI.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, after the termination of the Franchise Agreement, it is acknowledged that it will not be feasible for Brightstar Care, acting as the Business Associate, to return or destroy Protected Health Information (PHI). Instead, Brightstar Care will continue to protect the PHI under the terms of the Business Associate and Confidentiality Agreement.
Specifically, Brightstar Care is obligated to limit further uses and disclosures of PHI to only those purposes that make the return or destruction of the information infeasible or contrary to Privacy Laws. This obligation extends for as long as Brightstar Care maintains such PHI. This means that even after the franchise agreement ends, Brightstar Care must continue to safeguard the confidentiality and integrity of the PHI it possesses, adhering to privacy regulations.
This clause ensures that patient information remains protected even after the business relationship between the franchisee and Brightstar Care concludes. For a prospective franchisee, this highlights the ongoing responsibility to manage and protect sensitive health information, even post-termination, and the importance of understanding and adhering to all applicable Privacy Laws.