What is the prohibited action for a Brightstar Care franchisee regarding customers with service addresses in another franchisee's protected territory?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Referral sources are not exclusive, and you may call on referral sources outside your Protected Territory with the prior notification in writing to the franchisee that owns the territory in which you will be marketing. All customers serviced must be in your Protected Territory and cannot be customers with service addresses, or services performed, in another franchisee's protected territory held under a Franchise Agreement. If you service customers who are sourced from an unclaimed territory that later becomes the protected territory of another franchisee, you may, in our sole discretion, retain those and only those customers whom you secured prior to the unclaimed territory being purchased by the other franchisee.
Source: Item 12 — TERRITORY (FDD pages 67–75)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from servicing customers with service addresses located within another franchisee's protected territory. This restriction is in place to protect the territorial exclusivity granted to each franchisee. However, there are exceptions to this rule.
Brightstar Care allows franchisees to call on referral sources outside their protected territory, provided they give prior written notification to the franchisee who owns the territory they intend to market in. Additionally, if a franchisee begins servicing customers from an unclaimed territory that is later assigned to another franchisee, Brightstar Care may, at its discretion, allow the original franchisee to retain those customers they secured before the territory was claimed.
It's important to note that violating the Cross-Territorial Policy, which outlines these territorial rules, can result in financial penalties or even termination of the Franchise Agreement. Franchisees are responsible for any payments or penalties owed to other franchisees due to violations of this policy. Therefore, understanding and adhering to these territorial restrictions is crucial for a Brightstar Care franchisee to avoid potential conflicts and maintain compliance with the Franchise Agreement.