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What are the Brightstar Care franchisee's obligations regarding signage (Item 7) and how does this relate to the restrictions on sources of products and services (Item 8)?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

ector(s) of Nursing.

You must purchase all signs, uniforms, drug screening services, and medical supplies (where alternative sources of supply are unavailable) from us, designated suppliers or approved suppliers. You must offer services in the manner we prescribe, provide quality client service, and otherwise operate the Agency to enhance the image we intend for the BrightStar Care Agency Program, including the live answer for existing and prospective customers, employees, and applicant calls as outlined in the Operations Manual.

We formulate and modify our standards and specifications for products and services based upon marketplace and reimbursement changes, the collective experience of our franchisees and our company-owned locations, and our franchise support center personnel. We have the right to change our standards and specifications, including those for products, services, signs, and medical supplies, by written notice to you or through changes in the Operations Manual. You may incur an increased cost to comply with these changes at your own expense; however, no change will materially alter your fundamental rights under the Franchise Agreement. We will notify you of any change to our standards and specifications by way of electronic or written amendments to the Operations Manual or otherwise in writing.

If you wish to purchase from an unapproved supplier any item or service designated to be purchased only from an approved supplier, you may request our evaluation of a proposed supplier, a description of the item you wish to purchase, and purchase price of the item, if known. While we are not required to approve any particular supplier, we may base our approval of any proposed item or supplier on considerations relating to the item or supplier itself as well as to the uniformity, efficiency, and quality of operation we deem necessary or desirable for our BrightStar Care Agency Program as a whole. We will notify you in writing (via email or otherwise) of our approval or disapproval of a proposed supplier, product, or service within 30 days after receiving all requested information. We may charge you up to $5,000 for the evaluation if we ultimately approve the supplier. However, we will charge a minimum fee of $2,500 if the vendor, as part of its proposed scope of services, will need access to any of our technology platforms; this fee goes to pay a third party for its risk-assessment services and is due whether or not we approve the supplier. We may revoke our approval of particular products or suppliers when we determine they no longer meet our standards. Upon receipt of written notice of such revocation, you must cease purchasing products from such supplier. You must use products purchased from approved suppliers solely in connection with the Agency's operation and not for any competitive business purpose. Despite these procedures, we may limit the number of approved suppliers, designate sources you must use, and refuse your requests for any reason, including because we already have designated an exclusive source (which might be us or our affiliate) for a particular item or service or believe that doing so is in the best interests of the BrightStar Care network. One of our officers owns an interest in BrightStar Technology. Otherwise, no officer or director owns an interest in a designated supplier.

You may request in writing our permission to use an alternative vendor for payroll services. Your written request must include a description of the service(s) the alternative vendor would provide, and the cost(s) of the service(s), if known.

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees are required to purchase all signs from Brightstar Care, designated suppliers, or approved suppliers. This requirement is part of a broader set of restrictions on sources of products and services, where franchisees must also obtain uniforms, drug screening services, and medical supplies from approved sources if alternative sources are unavailable. Brightstar Care formulates and modifies standards and specifications for products and services based on marketplace and reimbursement changes, the collective experience of franchisees and company-owned locations, and franchise support center personnel. These standards and specifications can change, including those for signs, and Brightstar Care will notify franchisees of any changes in writing or through updates to the Operations Manual. Franchisees may incur increased costs to comply with these changes.

The purpose of these restrictions is to ensure uniformity, efficiency, and quality of operation within the Brightstar Care franchise system. Brightstar Care retains the right to change these standards, including those for products, services, and signs, by providing written notice or through changes in the Operations Manual. While franchisees bear the cost of complying with these changes, the FDD states that no change will materially alter the franchisee's fundamental rights under the Franchise Agreement.

If a franchisee wishes to use an unapproved supplier for items or services that must be purchased from an approved supplier, they can request an evaluation of the proposed supplier. Brightstar Care may charge up to $5,000 for this evaluation if the supplier is ultimately approved. However, a minimum fee of $2,500 is charged if the vendor needs access to any of Brightstar Care's technology platforms, regardless of approval. Brightstar Care may also revoke approval of particular products or suppliers if they no longer meet the company's standards. These restrictions ensure that Brightstar Care maintains control over the quality and consistency of its brand and services, but they also limit the franchisee's autonomy in sourcing products and services and may increase their costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.