Does the Brightstar Care non-compete apply if the other Brightstar Care agency is owned by the franchisor or its affiliates?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the non-compete agreement does apply even if the other Brightstar Care agency is owned by the franchisor or its affiliates. Specifically, after the franchise agreement expires, is not renewed, or is terminated, the franchisee is restricted from engaging in a Competing Business within certain territories. These territories include the protected territory of any other Brightstar Care Agency, regardless of whether that agency is owned by a franchisee, Brightstar Care itself, or its affiliates. This restriction lasts for a period of 24 months.
This means that a franchisee's non-compete obligations extend to areas where Brightstar Care or its affiliates operate their own agencies. This is a stricter condition than some franchises, where non-competes only protect other franchisees.
For a prospective franchisee, this clause has significant implications. It limits their ability to operate a competing business not only near other franchisees but also near corporate-owned or affiliated Brightstar Care locations after leaving the Brightstar Care system. This could restrict future business opportunities and should be carefully considered when evaluating the franchise agreement.