During the Initial Term, what constitutes a 'Competing Business' for Brightstar Care franchisees?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
11.4.2 You covenant during the Initial Term not directly or indirectly, for yourself or through, on behalf of, or in conjunction with any person or entity, to own, manage, operate, maintain, engage in, consult with or have any interest in any business, other than the one authorized by this Agreement or any other agreement between you and us, that would be considered a Competing Business. For purposes of this Section 11.4, a "Competing Business" is any business that provides (a) supplemental healthcare staff to institutional clients, such as hospitals, Medicare agencies, hospice agencies, assisted-living centers, nursing homes and clinics; (b) homecare services—whether comprehensive care services (including medical and non-medical care services), solely non-medical care services, or solely medical care services—to private-duty clients within their home or residence (the reference to "private-duty clients" means clients who receive care in their homes or other places of residence regardless of the nature of the payor for such care (e.g., a private individual, long-term care, commercial insurance, National Accounts payor, Medicare Advantage, Medicaid, etc.)); (c) case management and care management services; and/or
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a 'Competing Business' during the Initial Term is defined specifically in Section 11.4.2 of the franchise agreement. It includes any business that provides certain services, directly or indirectly, other than the business authorized by the franchise agreement.
Specifically, a Competing Business includes those that offer supplemental healthcare staff to institutional clients like hospitals, Medicare agencies, hospice agencies, assisted-living centers, nursing homes, and clinics. It also encompasses businesses providing homecare services to private-duty clients, whether these services are comprehensive (including both medical and non-medical care), solely non-medical, or solely medical, regardless of who pays for the care. The definition extends to businesses offering case management and care management services.
Additionally, a 'Competing Business' includes any business offering other services, technology, devices, or products that Brightstar Care may authorize franchisees to offer or sell now or in the future. This broad definition aims to prevent franchisees from engaging in any business activity that could directly compete with or detract from the Brightstar Care system during the term of their franchise agreement.