What happens if a Brightstar Care franchisee does not comply with Privacy Laws?

BrightStar Franchising, LLC ("BrightStar" or "Business Associate") hereby enter into this Agreement, effective as of Effective Date of the Franchise Agreement (the "Effective Date").

Recitals

• A. BrightStar arranges for certain products and services (the "Services") as a franchisor, to Covered Entity as a franchisee, as set forth in the BrightStar Franchising, LLC Agency Franchise Agreement between Covered Entity and BrightStar ("Franchise Agreement").
• B. The Parties' performance under the Franchise Agreement may or will require Covered Entity to disclose and/or provide to Business Associate private and/or protected health and/or medical information as defined under, and governed by, applicable state law and Individually Identifiable Health Information and/or Electronic Protected Health Information as defined in the Health Insurance Portability and Accountability Act ("HIPAA"), the Health Information Technology for Economic and Clinical Health Act ("HITECH"), and/or regulations promulgated under such laws (state law, HIPAA, and HITECH are hereafter referred to collectively as "Privacy Laws") and may or will require BrightStar to receive, access, review, maintain, retain, modify, record, store, forward, produce, hold, use, create, disclose, and/or destroy such information (the "PHI").
• C. BrightStar's performance of the Services may give rise to certain legal obligations under Privacy Laws and BrightStar may be considered a "business associate" and franchisee may be a "covered entity" as those terms are defined in 45 C.F.R. § 160.103. This Agreement will not apply to relationships between the parties where BrightStar is not considered a "business associate" as defined in 45 C.F.R. 160.103.

Source: Item 22 — CONTRACTS (FDD pages 117–118)