Are Brightstar Care franchisees and their owners, officers, and directors required to comply with post-termination provisions, including non-competition and non-disclosure covenants?

According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees and their owners, officers, and directors must comply with post-termination provisions, including non-competition and non-disclosure agreements. Specifically, if a franchisee transfers their franchise to a new owner, both the transferring franchisee and their owners, officers, and directors must agree to comply with the post-termination provisions outlined in the franchise agreement. These provisions are designed to protect Brightstar Care's confidential information, customer relationships, and overall brand integrity after a franchise agreement ends.

These post-termination obligations typically include restrictions on operating a competing business within a certain geographic area and for a specific period. They also prevent the franchisee from disclosing or using Brightstar Care's confidential information, such as operating manuals, marketing strategies, and client lists. These restrictions apply not only to the franchisee entity but also to its owners, officers, and directors, ensuring that all individuals with access to sensitive information are bound by the agreement.

This requirement is a standard practice in franchising, as franchisors need to safeguard their business systems and brand reputation. Prospective Brightstar Care franchisees should carefully review the specific terms of the post-termination covenants in the franchise agreement to understand the scope and duration of these restrictions. Understanding these obligations is crucial for planning their future business activities after the franchise agreement expires or is terminated.