What happens to staffing contracts when the area a Brightstar Care franchisee is servicing outside their protected territory is granted to another franchisee?

According to Brightstar Care's 2025 Franchise Disclosure Document, when a Brightstar Care franchisee is servicing clients outside of their protected territory and that area is then granted to a new franchisee, the existing staffing contracts must be transferred to the new franchisee. This transfer is expected to occur as soon as Brightstar Care deems the new franchisee operationally capable of managing those contracts. However, the original franchisee may be allowed to retain the existing clients being serviced in the area, excluding the staffing contracts, at Brightstar Care's sole discretion.

This policy is detailed within Brightstar Care's Cross-Territorial Policy, which is outlined in the Operations Manual. The ability for a franchisee to solicit or service clients outside their protected territory is conditional. Specifically, at least 75% of a franchisee's total Net Billings must come from business within their protected territory, including both National Accounts and non-National Accounts, plus National Accounts Net Billings from outside their protected territory.

This means that a Brightstar Care franchisee's ability to service clients outside their territory is limited and primarily intended to supplement their core business within their protected territory. The requirement to transfer staffing contracts to a new franchisee ensures that the new franchisee can establish a strong business within their territory. Brightstar Care retains the discretion to allow the original franchisee to continue serving existing clients (excluding staffing contracts), which may provide some continuity of care for those clients during the transition.