If a Brightstar Care franchisee sells their agency, how long does the non-compete period last?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
11.4.3 You covenant, for a period of twenty-four (24) months after the expiration, non-renewal or termination of this Agreement, regardless of the cause of termination, or for twenty-four (24) months after sale of the Agency or any interest in you, either directly or indirectly, for yourself or through, on behalf of, or in conjunction with any person or entity, not to own, manage, operate, maintain, engage in, consult with or have any interest in any Competing Business:
(a) Located at the premises of the former Agency;
(b) Located or operating within the Protected Territory of the former Agency;
(c) Located or operating within the protected territory of any other BrightStar Care Agency (whether owned by a franchisee, us, or our affiliates) in operation on the effective date of the expiration, non-renewal, termination, or transfer; or
(d) Located or operating within a 25-mile radius of the outer boundaries of the protected territory of any other BrightStar Care Agency (whether owned by a franchisee, us, or our affiliates) in operation on the effective date of the expiration, non-renewal, termination, or transfer.
11.4.4 You covenant, for a period of twenty-four (24) months after the expiration, non-renewal or termination of this Agreement, regardless of the cause of termination, or for twenty-four (24) months after sale of the Agency or any interest in you, not to solicit business from clients of your former Agency, from any National Accounts, or from referral sources with which your former Agency or the BrightStar System did business during the Initial Term and not to contact any of our suppliers or vendors in connection with your ownership, management, operation, maintenance of, engagement in, consulting with, or having any interest in any Competing Business.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, if a franchisee sells their agency, they are subject to a non-compete covenant for a period of 24 months following the sale. This non-compete restricts the franchisee from engaging in any Competing Business either directly or indirectly.
The restrictions apply to businesses located at the former agency's premises, within the former agency's protected territory, within the protected territory of any other BrightStar Care agency, or within a 25-mile radius of the outer boundaries of any other BrightStar Care agency's protected territory. These restrictions are in place regardless of who owns the other BrightStar Care agency, whether it's another franchisee, Brightstar Care itself, or its affiliates.
Additionally, for 24 months after the sale, the franchisee is prohibited from soliciting business from clients of their former agency, National Accounts, or referral sources with which their former agency or the BrightStar System did business during the Initial Term. They are also restricted from contacting any of Brightstar Care's suppliers or vendors in connection with any Competing Business. This comprehensive non-compete aims to protect Brightstar Care's market share, client relationships, and proprietary information after a franchise changes hands.