When operating a Brightstar Care agency, does the franchisee assume full responsibility for all debts and obligations?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You have sole responsibility and authority for your labor relations and employment practices, including, among other things, employee selection, promotion, termination, hours worked, rates of pay, benefits, work assigned, discipline, adjustments of grievances and complaints, and working conditions. Agency employees are exclusively under your control at the Agency. We will not, directly or indirectly, exercise or reserve control over employment and personnel matters and decisions involving your Agency's employees. You must communicate clearly with Agency employees in your employment agreements, human resource manuals, written and electronic correspondence, paychecks, and other materials that you (and only you) are their employer and that we, as the franchisor of BrightStar Agencies, and our affiliates are not their employer or joint employer and do not engage in any employer-type activities (including those described above) for which only franchisees are responsible. Notwithstanding your use of the ABS or any Third Party Materials, you are solely responsible and liable for understanding and following wage and hour laws as well as all other state, local, and federal laws applicable to the Agency's operation. You must obtain an acknowledgment (in the form we specify or approve) from all Agency employees that you (and not we or our affiliates) are their employer.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
Based on the 2025 Brightstar Care Franchise Disclosure Document, franchisees have sole responsibility for their agency's debts and obligations. Specifically, the franchisee is responsible for labor relations, employment practices, and compliance with all applicable laws. Brightstar Care emphasizes that franchisees are the exclusive employer of their agency's employees. Franchisees must communicate clearly with employees that they alone are responsible as the employer, and that Brightstar Care, as the franchisor, is not involved in employment-related activities.
This means that a Brightstar Care franchisee is responsible for all aspects of managing their employees, including hiring, firing, compensation, and adherence to labor laws. This includes understanding and following wage and hour laws, as well as other state, local, and federal regulations applicable to the agency's operation. The franchisee must also secure an acknowledgment from all agency employees confirming that the franchisee, and not Brightstar Care, is their employer.
This arrangement is typical in franchising, where the franchisee operates as an independent business owner. While Brightstar Care provides the brand, system, and support, the franchisee is responsible for the day-to-day operations of their agency, including managing employees and ensuring compliance with all applicable laws. This division of responsibility allows Brightstar Care to focus on developing and maintaining the franchise system, while franchisees can focus on building and managing their individual businesses.
Prospective franchisees should carefully consider the implications of being solely responsible for their agency's debts and obligations. This includes understanding the legal and financial responsibilities of being an employer, as well as the importance of complying with all applicable laws and regulations. Franchisees may want to consult with legal and financial professionals to ensure they are prepared to meet these responsibilities.