What is the Brightstar Care franchisee's responsibility for investigating and understanding applicable laws and regulations?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You must comply with all wage and hour laws and regulations as well as all other federal, state, and local laws and regulations that apply to your operations, including those pertaining to the health care industry, professional and facility licensing, workers' compensation, corporate, tax, environmental, sanitation, insurance, no smoking, EEOC, OSHA, HIPAA, data privacy and similar laws (e.g., California Consumer Privacy Act), non-discrimination, employment, and sexual harassment laws. You must obtain and maintain any health care or employment-related permits, licenses, certifications, or other indications of authority necessary to operate your Agency, including, for example, a home health agency license, nurse staffing and/or employment agency license, and Joint Commission Accreditation. A Clinical Laboratory Improvement Amendment waiver ("CLIA" waiver) may need to be obtained and maintained if you are performing services requiring a CLIA waiver. Some jurisdictions may also require a Certificate of Need. Some states require you to obtain a license to provide employment services. We may require you to obtain a particular permit, license, or accreditation. Some states have imposed a moratorium on the issuance of home health agency licenses, nurse staffing licenses, and other in-home healthcare licenses or permits. You are responsible for investigating the availability of and requirements for obtaining all necessary licenses in your state and creating, as necessary, state-specific versions of required policies and procedures that meet or exceed BrightStar brand standards and Joint Commission requirements. You should investigate the availability of all required licenses before acquiring our franchise, as you cannot operate as a franchisee without them. If you are not able to obtain a newlyissued home health agency or other required license in your state, you might be able to acquire a previously-issued license from an existing provider in the state that no longer needs its license and is interested in selling its license to a third party. We cannot predict the costs of doing so.
We have resources available as a reference to you, but you are solely responsible for investigating, understanding, and complying with the laws, regulations, and requirements applicable to you and your Agency. Your Franchise Agreement prohibits you from participating in Medicare or other governmental payor programs, with the exception of programs funded by the United States Department of Veterans Affairs, Department of Veterans Health Administration (VA). You may
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–14)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees are responsible for understanding and complying with all applicable laws and regulations related to their Brightstar Care agency. This includes federal, state, and local laws pertaining to the healthcare industry, such as those concerning professional and facility licensing, wage and hour laws, workers' compensation, corporate tax, environmental issues, sanitation, insurance, no smoking policies, EEOC, OSHA, HIPAA, data privacy (like the California Consumer Privacy Act), non-discrimination, employment, and sexual harassment.
Brightstar Care franchisees must obtain and maintain all necessary healthcare or employment-related permits, licenses, certifications, and other authorizations required to operate their agency. Examples include a home health agency license, nurse staffing and/or employment agency license, and Joint Commission Accreditation. Depending on the services offered, a Clinical Laboratory Improvement Amendment waiver (CLIA) or a Certificate of Need may also be necessary. Some states require a license to provide employment services, and Brightstar Care may also require specific permits, licenses, or accreditations. Franchisees must investigate the availability and requirements for obtaining all necessary licenses in their state and create state-specific versions of required policies and procedures that meet or exceed BrightStar brand standards and Joint Commission requirements.
It is critical for prospective Brightstar Care franchisees to investigate the availability of all required licenses before acquiring the franchise, as they cannot operate without them. If a newly issued home health agency or other required license is not obtainable, franchisees might be able to acquire a previously issued license from an existing provider. While Brightstar Care provides resources as a reference, franchisees are ultimately responsible for investigating, understanding, and complying with all applicable laws, regulations, and requirements. The Franchise Agreement also prohibits franchisees from participating in Medicare or other governmental payor programs, with the exception of programs funded by the United States Department of Veterans Affairs, Department of Veterans Health Administration (VA).