What are the potential consequences for non-compliance with applicable laws and regulations as a Brightstar Care franchisee?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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FRANCHISOR: BRIGHTSTAR FRANCHISING, LLC
FRANCHISEE (YOU): Exhibit K-1
EXHIBIT E
TO BRIGHTSTAR FRANCHISING, LLC'S FRANCHISE DISCLOSURE DOCUMENT
SUPPLEMENTAL DISCUSSION ON SPECIAL INDUSTRY LAWS
SUPPLEMENTAL DISCUSSION ON SPECIAL INDUSTRY LAWS
In addition to the information provided in Item 1 of the Franchise Disclosure Document, you should consider the following types of regulation that may apply to the ownership and operation of your Agency:
a. Licensure; Record Keeping
Most states have licensing, certification or registration requirements applicable to the services you will be providing as a BrightStar Care franchisee. You therefore may be required to become licensed as a home health agency, nurse staffing agency and/or employment agency and to comply with state law requirements, including the screening requirements of health care workers. Special training and competency requirements may apply, including with respect to infection control, abuse and neglect, patient confidentiality and the handling of client finances. You will need to maintain comprehensive policies and procedures describing how you perform these functions. You may also be required to maintain a leased office location and pay a licensing fee to the state agency responsible for enforcing these requirements. State licensing, certification, and registration statutes may require a minimum level of education or related work experience and/or the payment of a fee in order to obtain the license.
You may also be required to have a full-time registered nurse (RN) to comply with the regulations in your state governing nursing agencies and/or home health agencies. Some states impose restrictions on advertising, and conduct pre-licensure and/or complaint surveys of agencies' facilities. Fines and penalties may be levied for non-compliance. You should inquire about any applicable laws and your corresponding obligations and cost of compliance.
Some states may also have specific record-keeping or other requirements for health care providers. In addition, almost all states prohibit the use or disclosure of individual's health information for purposes other than treatment, payment or internal health care operations. Civil and criminal fines or penalties may be imposed for the unauthorized use of health or financial information, and state authorities may impose remediation measures in the event of breaches of information security.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, non-compliance with applicable laws and regulations can lead to significant repercussions for franchisees. Many states require licensing, certification, or registration for home health agencies, nurse staffing agencies, and employment agencies. Failure to comply with state law requirements, including healthcare worker screening, special training, competency standards (such as infection control, abuse and neglect, patient confidentiality, and handling client finances), and maintaining comprehensive policies and procedures, can result in penalties. Franchisees may also be required to maintain a leased office and pay licensing fees.
Specifically, fines and penalties may be levied for non-compliance with state licensing, certification, and registration statutes. These statutes may also mandate a minimum level of education or related work experience and/or the payment of a fee to obtain the necessary license.
Furthermore, although Brightstar Care franchisees are prohibited from participating in Medicare, they may provide staff to facilities that do. Therefore, franchisees must ensure they screen employees to determine whether they have been excluded from Medicare or Medicaid programs. Violations of the False Claims Act, which imposes civil liability for submitting false or fraudulent claims to the government, can result in fines, treble damages, attorneys' fees, and exclusion from federal healthcare programs. Brightstar Care franchisees are responsible for staying informed about changes in legislation that may impact their agency's operations and are strongly urged to consult with local counsel regarding all applicable laws and regulations.