What is a Brightstar Care franchisee's responsibility regarding state-specific policies and procedures?
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
participate in State Medicaid and Medicaid Waiver programs, as well as Medicare Advantage supplemental benefits personal care service programs, under certain conditions; however, you may not participate in Medicaid programs that require a Medicare number or require billing through Medicare, and you alone are responsible for complying with the state Medicaid requirements, which may include compliance with CMS policies and procedures and stand-alone technology required by the state or to meet the state's requirements. See Exhibits D and E for a summary of some of the applicable laws that may apply to your Agency. However, Exhibits D and E do not include all laws that may apply to your Agency. You should also be aware of pending legislation that may affect your Agency in the future.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–14)
What This Means (2025 FDD)
According to the 2025 Brightstar Care Franchise Disclosure Document, franchisees are responsible for understanding and adhering to all applicable federal, state, and local laws and regulations. This includes those specific to the healthcare industry, such as professional and facility licensing, workers' compensation, corporate tax, environmental regulations, sanitation, insurance, no smoking policies, EEOC, OSHA, HIPAA, data privacy laws like the California Consumer Privacy Act, non-discrimination, employment, and sexual harassment laws. Franchisees must also secure and maintain all necessary healthcare or employment-related permits, licenses, certifications, or other authorizations required to operate their agency, such as a home health agency license, nurse staffing and/or employment agency license, and Joint Commission Accreditation. A Clinical Laboratory Improvement Amendment waiver (CLIA) may also be necessary. Some states may require a Certificate of Need or a license to provide employment services.
Brightstar Care franchisees are responsible for investigating the availability of and requirements for obtaining all necessary licenses in their specific state. They must create state-specific versions of required policies and procedures that meet or exceed BrightStar brand standards and Joint Commission requirements. The FDD emphasizes the importance of investigating the availability of all required licenses before acquiring the franchise, as operation without them is not permitted. If a newly issued home health agency or other required license is not obtainable, franchisees might explore acquiring a previously issued license from an existing provider in the state, though Brightstar Care cannot predict the costs of doing so.
While Brightstar Care provides resources as a reference, the franchisee bears the sole responsibility for investigating, understanding, and complying with all applicable laws, regulations, and requirements. Franchisees are also responsible for complying with state Medicaid requirements, which may include compliance with CMS policies and procedures and stand-alone technology required by the state or to meet the state's requirements. The Franchise Agreement prohibits participation 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).