What is the prohibited action for a Brightstar Care franchisee regarding soliciting staffing business outside their Protected Territory without permission?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
s can be found at www.gbbis.com.
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. You may not solicit staffing business outside your Protected Territory without permission; the staffing business, along with any other business (excluding Net Billings from National Accounts) outside your Protected Territory, cannot exceed 25% of your Net Billings. Staffing business must be transitioned to the new franchisee per the Cross-Territorial policy outlined in the Operations Manual.
If (1) your monthly Net Billings from business outside your Protected Territory (excluding National Accounts Net Billings from outside your Protected Territory) exceed 25% of your total monthly Net Billings (excluding National Accounts Net Billings), (2) you are otherwise in compliance with your Franchise Agreement, and (3) you meet the criteria for expansion, we will ask you to acquire an additional franchise for an adjacent territory that will encompass the clients you are servicing outside the Protected Territory. This additional franchise may be for a traditional territory with population of 200,000 to 300,000 people or for a Medium Density Market territory or a Small territory. However, if you do not meet the criteria for expansion or, despite satisfying such criteria, you choose not to acquire an additional franchise for an adjacent territory within the timeframe we specify, you will be in default under the Franchise Agreement. Upon such a default, you will have 90 days from the date of our notice of default to you to grow the business within your Protected Territory so that the percentage of your total monthly Net Billings from business outside your Protected Territory (excluding National Accounts Net Billings from outside your Protected Territory) no longer exceeds 25% of your total monthly Net Billings.
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 prohibited from soliciting staffing business outside of their Protected Territory without first obtaining permission. However, the franchisee can call on referral sources outside their territory after providing written notification to the franchisee who owns that territory.
If a Brightstar Care franchisee services customers sourced from an unclaimed territory that later becomes another franchisee's protected territory, the original franchisee may retain only those customers secured before the territory was purchased, at Brightstar Care's discretion. The staffing business, along with any other business (excluding Net Billings from National Accounts) outside the Protected Territory, cannot exceed 25% of the Net Billings.
If a franchisee's monthly Net Billings from business outside their Protected Territory (excluding National Accounts Net Billings from outside the Protected Territory) exceeds 25% of their total monthly Net Billings (excluding National Accounts Net Billings), and they are otherwise in compliance with their Franchise Agreement and meet the criteria for expansion, Brightstar Care will require them to acquire an additional franchise for an adjacent territory. If the franchisee does not meet the criteria for expansion or chooses not to acquire an additional franchise, they will be in default under the Franchise Agreement and have 90 days to reduce their business outside the Protected Territory to no more than 25% of their total monthly Net Billings.