What is the Brightstar Care franchisee's obligation regarding staffing business transitioned to a new franchisee?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
when the area is granted to another franchisee, you may, in our sole discretion, retain the existing clients being serviced in the area (excluding staffing contracts, which must be transferred to the new franchisee as soon as it is, in our opinion, operationally capable), as described in our then-current Cross-Territorial Policy as outlined in the Operations Manual.
Source: Item 12 — TERRITORY (FDD pages 67–75)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, if a Brightstar Care franchisee is servicing customers in an area that is later granted to a new franchisee, the existing franchisee may retain those clients at Brightstar Care's discretion. However, staffing contracts must be transferred to the new franchisee. This transfer should occur as soon as the new franchisee is deemed operationally capable by Brightstar Care.
The specifics of this transfer are detailed in Brightstar Care's Cross-Territorial Policy, which is outlined in the Operations Manual. Franchisees are responsible for understanding and adhering to this policy, as violations can lead to financial penalties or even termination of the Franchise Agreement. The Cross-Territorial Policy is considered part of Brightstar Care's system standards, emphasizing its importance.
This policy ensures that new franchisees receive the full benefit of their territory and that Brightstar Care maintains consistent service standards across its franchise network. Prospective franchisees should carefully review the Cross-Territorial Policy in the Operations Manual to understand their obligations and potential liabilities related to servicing clients outside their protected territory.