What are Brightstar Care franchisees responsible for regarding wage and hour laws?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
hich only franchisees are responsible, such as employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. Notwithstanding your use of the ABS or any Third Party Materials, you are solely responsible and liable for understanding and following wage and hour laws as well as all other state, local, and federal laws applicable to the Agency's operation. You also must obtain an acknowledgment (in the form we specify or approve) from all Agency employees that you (and not we) are their employer.
5.3 Infringement
We or our affiliates will have the sole right to handle disputes with third parties concerning our ownership of or rights in, or your authorized use of, the Licensed Marks or the BrightStar Care Agency Program. You must immediately notify us in writing if you receive notice, or learn, of any: (i) improper use of any of the Licensed Marks or elements of the BrightStar Care Agency Program; (ii) use by any third party of any mark, design, logo or commercial symbol which, in your judgment, may be confusingly similar to any of the Licensed Marks; (iii) use by any third
party of any business practice which, in your judgment, unfairly simulates the BrightStar Care Agency Program in a manner likely to confuse or deceive the public; or (iv) claim, challenge, suit or demand asserted against you disputing your authorized use of the Licensed Marks or the BrightStar Care Agency Program. We have the right to take any action we deem appropriate, including, without limitation, to take no action, and the sole right to control any legal proceeding or negotiation arising out of any infringement, challenge or claim or otherwise relating to our ownership of or rights in, or your authorized use of, the Licensed Marks or the BrightStar Care Agency Program.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees are solely responsible for understanding and adhering to all wage and hour laws applicable to their agency's operations. This responsibility extends to all state, local, and federal laws. Brightstar Care franchisees must also ensure that all agency employees acknowledge, in a specified or approved form, that the franchisee is their employer, not Brightstar Care.
This means that franchisees must stay informed about current wage and hour regulations, including minimum wage, overtime pay, meal and rest break requirements, and proper classification of employees. They are liable for any violations of these laws within their Brightstar Care agency. Franchisees should consult with legal and HR professionals to ensure compliance and implement appropriate policies and procedures.
Brightstar Care emphasizes that it does not engage in employer-type activities for which franchisees are responsible, such as employee selection, promotion, termination, determining hours worked, setting rates of pay, providing benefits, assigning work, disciplining employees, adjusting grievances and complaints, and managing working conditions. Franchisees have sole authority over their labor relations and employment practices. This separation of responsibilities is a common arrangement in franchising, where the franchisee operates as an independent business owner.
To further clarify the employer relationship, Brightstar Care requires franchisees to communicate clearly in employment agreements, HR manuals, and other employee-related materials that the franchisee is the sole employer. This helps avoid any confusion among employees about who is responsible for their employment terms and conditions. Franchisees must ensure that all employment-related documentation and practices reflect this distinction.