Is a Brightstar Care franchisee responsible for understanding and following wage and hour laws applicable to the Agency's operation, even when using ABS or Third Party Materials?

According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees are solely responsible for understanding and adhering to all wage and hour laws, as well as other state, local, and federal laws applicable to their agency's operation. This responsibility remains even when using the Athena Business System (ABS) or any Third Party Materials.

This means that Brightstar Care franchisees must ensure their business practices comply with labor laws regarding employee compensation, working hours, and related regulations. The franchisee's obligations include proper classification of employees, payment of minimum wage and overtime, and compliance with record-keeping requirements.

Brightstar Care emphasizes that it is not the employer of the agency's employees; the franchisee is. Franchisees must communicate this clearly to their employees in all employment-related documents and interactions. Franchisees must also secure an acknowledgment from all agency employees confirming that the franchisee, and not Brightstar Care, is their employer.

Brightstar Care also disclaims any warranty that the ABS will be free from defects or mistakes regarding wage and hour laws or other federal, state, and local laws. This further reinforces the franchisee's responsibility to ensure compliance, as the franchisor does not guarantee the ABS's compliance with these laws.