Is a Brightstar Care franchisee prohibited from providing solely medical care services to private-duty clients within their home or residence?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of this Section 14.3, "Similar Business" means any business that provides: (1) supplemental healthcare staff to institutional clients, such as hospitals, Medicare agencies, hospice agencies, assistedliving centers, nursing homes and clinics; (2) homecare services—whether comprehensive care services (including medical and non-medical care services), solely non-medical care services, or solely medical care services—to private-duty clients within their home or residence (the reference to "private-duty clients" means clients who receive care in their homes or other places of residence regardless of the nature of the payor for such care (e.g., a private individual, long-term care, commercial insurance, National Accounts payor, Medicaid, etc.)); (c) case management and care management services; and/or (d) any other services, technology or devices, or products we may now or in the future authorize you to offer or sell in connection with the Agency's operation. The obligations described above are in addition to your other post-term obligations in this Agreement described in Sections 14.1 and 14.2. The nonsolicitation restrictions above are in lieu of your post-term non-competition obligations under Sections 11.4.3 and 11.4.4 of this Agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–92)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a "Similar Business" is defined in Item 17, in part, as one that provides "homecare services—whether comprehensive care services (including medical and non-medical care services), solely non-medical care services, or solely medical care services—to private-duty clients within their home or residence." This definition is used in the context of post-term obligations, specifically regarding non-solicitation.
This means that during the term of the Franchise Agreement, Brightstar Care franchisees are permitted to provide solely medical care services to private-duty clients within their home or residence. The FDD excerpt does not place restrictions on the services a franchisee can offer during the agreement, but rather defines what constitutes a "Similar Business" after the agreement's term, which is relevant to non-solicitation clauses.
For a prospective Brightstar Care franchisee, this indicates that the franchise opportunity includes the ability to offer a range of homecare services, including those focused solely on medical care. This flexibility could be beneficial in catering to specific market needs and client demands within their territory. However, it's important to understand the full scope of services permitted and any requirements or limitations that may apply during the franchise term, as detailed elsewhere in the FDD and Franchise Agreement.