What opportunities to cure are provided to a Brightstar Care franchisee before Brightstar Care terminates the franchise agreement, and what are the corresponding notice periods?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
de the types and quantities of personal protective equipment we require for the field staff of BrightStar Care Agencies and to ensure such personal protective equipment is used in compliance with current clinical guidance (whether such guidance is originally issued by us as part of the BrightStar Care Agency program or by external authorities).
13.4 Termination by Us With Notice and 30 Days' Opportunity to Cure
We have the right to terminate this Agreement if any of the following defaults remains uncured after expiration of the 30-day cure period:
- 13.4.1 Failure to Comply with this Agreement or another franchise agreement between Us or any of Our Affiliates and You or any of Your Affiliates. Except as noted in Sections 13.1 through 13.3 above and Section 13.5 below, your other failures to comply with the terms and conditions of this Agreement are subject to a 30-day cure period. In addition, any default under another franchise agreement for any of the following reasons will be deemed a default under this Agreement: (i) any clinical or client care issues like those set forth in Sections 13.2.6 and 13.3.9 through 13.3.11 of this Agreement, or (ii) criminal acts, misconduct, fraud and misrepresentations like those set forth in Sections 13.2.1 through 13.2.3 of this Agreement. Your failure to pay fees owed or the failure to meet Performance Standards under another franchise agreement will not alone trigger a cross-default under this Agreement unless accompanied by a default described in (i) or (ii) above.
- 13.4.2 Failure to Service National Accounts. Unless you have formally notified us that you are opting out of servicing a specific National Account (as outlined in the Operations Manual), if you fail to: (i) sign up for National Accounts business upon completion of training, (ii) service a National Account in accordance with the National Accounts contract or bid or the guidelines contained in the Operations Manual, (iii) assist us in resolving a National Accounts service dispute, or (iv) otherwise comply with our requirements for National Accounts business as provided in this Agreement and as outlined in the Operations Manual. (The 30-day cure period does not apply to National Account defaults for which we have the right to terminate this Agreement upon notice, without providing you an opportunity to cure, under Section 13.2.17 above.)
- 13.4.3 Violation of Cross Territory Service ("Cross Territorial Policy"). You solicit and/or service clients in another franchisee's protected territory or in a territory currently served by an Agency owned by us or our affiliate without prior written permission from the owner of that territory and in violation of the Cross Territorial Policy contained in the Operations Manual.
In the event you service clients who are sourced from an unclaimed territory that later becomes the protected territory of another franchisee, you must, in our sole discretion, transfer those clients in an orderly manner to the franchisee that acquired the protected territory within 90 days after the franchisee obtains licensure to service those clients. However, we have the right, in our sole discretion, to allow you to retain those and only those clients whom you secured prior to the unclaimed territory being purchased by another franchisee.
13.4.4 Failure to Hire and Maintain Director of Nursing. You fail to hire and maintain a part-time Director of Nursing during the initial period or fail to maintain a full-time Director of Nursing if required by state licensure or census and acuity of patients require a fulltime Director of Nursing, unless a waiver was approved for the current calendar year.
13.5 Termination by Us Upon Notice and 90 Days' Opportunity to Cure
We have the right to terminate this Agreement if any of the following defaults remains uncured after expiration of the 90-day cure period:
- 13.5.1 Full-Time, Fully-Trained Salesperson. You fail to hire and maintain a fulltime, fully-trained salesperson for the Agency unless a waiver was approved for the current calendar year.
- 13.5.2 Full-Time, Fully-Trained Branch Manager/Operations Manager. You fail to hire and maintain a full-time, fully-trained branch manager/operations manager for the Agency unless a waiver was approved for the current calendar year.
- 13.5.3 Training New Personnel. You fail to fully train a newly-hired Agency salesperson, branch manager/operations manager, or Director of Nursing within ninety (90) days after you hire them.
- 13.5.4 Agency Net Promotor Score.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, there are instances where a franchisee is provided an opportunity to cure certain defaults before Brightstar Care terminates the franchise agreement. Specifically, Brightstar Care may terminate the agreement if certain defaults remain uncured after either a 30-day or 90-day cure period.
A franchisee has 30 days to cure defaults related to failures to comply with the franchise agreement, failure to service National Accounts, or violations of the Cross Territory Service policy. However, the 30-day cure period does not apply to National Account defaults for which Brightstar Care has the right to terminate the agreement upon notice, without providing an opportunity to cure.
A franchisee has 90 days to cure defaults related to failing to hire and maintain a full-time, fully-trained salesperson or branch/operations manager, failing to fully train newly-hired personnel, failing to maintain certain Agency Net Promoter Scores or employee engagement scores, or failing to maintain certain field staff retention rates.