Does the Brightstar Care franchisee's indemnification obligation extend to claims arising from non-compliance with employment laws?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You have sole responsibility and authority for your labor relations and employment practices, including, among other things, employee selection, promotion, termination, hours worked, rates of pay, benefits, work assigned, discipline, adjustments of grievances and complaints, and working conditions. Agency employees are exclusively under your control at the Agency. We will not, directly or indirectly, exercise or reserve control over employment and personnel matters and decisions involving your Agency's employees. You must communicate clearly with Agency employees in your employment agreements, human resource manuals, written and electronic correspondence, paychecks, and other materials that you (and only you) are their employer and that we, as the franchisor of BrightStar Agencies, and our affiliates are not their employer or joint employer and do not engage in any employer-type activities (including those described above) for which only franchisees are responsible. Notwithstanding your use of the ABS or any Third Party Materials, you are solely responsible and liable for understanding and following wage and hour laws as well as all other state, local, and federal laws applicable to the Agency's operation. You must obtain an acknowl
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees are responsible for understanding and following all state, local, and federal laws applicable to their agency's operation, including wage and hour laws. Brightstar Care franchisees have sole responsibility and authority for their labor relations and employment practices. This includes employee selection, promotion, termination, hours worked, rates of pay, benefits, work assigned, discipline, adjustments of grievances and complaints, and working conditions. Brightstar Care will not exercise control over employment and personnel matters involving the franchisee's agency employees.
The Brightstar Care franchisee must communicate clearly with agency employees that they (the franchisee) are the employer and that Brightstar Care, as the franchisor, is not their employer. This communication must be included in employment agreements, human resource manuals, written and electronic correspondence, paychecks, and other materials. Franchisees must also obtain acknowledgment from all agency employees that the franchisee (and not Brightstar Care) is their employer.
In practice, this means a Brightstar Care franchisee is responsible for ensuring their Brightstar Care business complies with all employment laws. The franchisee is liable for any non-compliance. This includes proper payment of wages, adherence to working hour regulations, and non-discriminatory employment practices. The franchisee must implement policies and procedures to ensure compliance and should seek legal counsel to understand their obligations. The franchisee must also ensure that all employees understand that the franchisee is their employer, not Brightstar Care.