For how long after the termination of a Brightstar Care franchise agreement is the franchisee prohibited from operating a competing business?
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, a franchisee is restricted from engaging in a competing business for a period of 24 months following the expiration, non-renewal, or termination of the Franchise Agreement. This restriction applies regardless of the reason for termination. The same 24-month restriction applies after the sale of the Brightstar Care agency or any interest in it.
This non-compete clause prevents the franchisee from owning, managing, operating, maintaining, engaging in, consulting with, or having any interest in a Competing Business. The restrictions apply to businesses located at the former agency's premises, within the protected territory of the former agency, 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.
In addition to the geographic and activity-based restrictions, the franchisee is also prohibited from soliciting business from clients of their former Brightstar Care agency, National Accounts, or referral sources with which their former agency or the Brightstar Care system conducted business during the initial term. They are also barred from contacting any of Brightstar Care's suppliers or vendors in connection with any Competing Business. This comprehensive non-compete agreement is designed to protect Brightstar Care's market share, customer relationships, and proprietary information after a franchise agreement ends.