What rights does Brightstar Care grant to the franchisee for establishing and operating a BrightStar Care Agency?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
mises, commitments and understandings contained herein, we and you hereby agree as follows:
1. GRANT OF FRANCHISE
1.1 Grant
We hereby grant to you, upon the express terms and conditions contained in this Agreement, and you hereby accept, a franchise for the right to establish and operate one BrightStar Care Agency under the System and Licensed Marks identified below in the protected territory described in Exhibit A to this Agreement (the "Protected Territory"). We have the right to supplement, improve or otherwise modify the BrightStar System from time to time, and you agree to comply with all changes which may include, without limitation, the offer and sale of new or different products or services as we may specify and the acceptance of new sources of reimbursement as we may specify. You must offer and sell all products and services we require in the BrightStar System and may not offer or sell any unauthorized products or services.
1.2 Operation of Franchise Limited to Territory; Incidental Advertising
Referral sources are not exclusive, and you may call on referral sources outside your Protected Territory with prior notification in writing to the franchisee that owns the territory in which you will be marketing. All clients serviced must be in your Protected Territory and cannot be clients with service addresses, or services performed, in another protected territory held under a franchise agreement. You may not do staffing business outside your Protected Territory without our prior express written permission. In order to be granted the right to solicit or service clients outside the Protected Territory, you must meet the following conditions:
- (a) The area in which you wish to provide service to clients is not included in another franchisee's protected territory or in a territory currently served by an Agency owned by us or our affiliate.
- (b) On a monthly basis, at least seventy-five percent (75%) of your total Net Billings is from (i) business within your Protected Territory (consisting of both non-National Accounts Net Billings and National Accounts Net Billings derived from business within your Protected Territory) plus (ii) National Accounts Net Billings derived from National Accounts business outside your Protected Territory.
- (c) You may not explicitly direct any advertising to clients outside the Protected Territory.
- (d) When the area is granted to another franchisee, you may, in our sole discretion, retain the existing clients being serviced in the area (excluding staffing contracts, which must be transferred to the new franchisee as soon as it is, in our opinion, operationally capable), as described in our then-current Cross-Territorial Policy as outlined in the Operations Manual.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the company grants franchisees the right to establish and operate one BrightStar Care Agency under the BrightStar system and licensed marks within a protected territory, as detailed in Exhibit A of the franchise agreement. Franchisees must adhere to the terms of the agreement and BrightStar Care's standards and specifications. BrightStar Care has the right to modify the BrightStar system, including requiring franchisees to offer new products or services and accept new sources of reimbursement. Franchisees are obligated to offer and sell all products and services required by BrightStar Care and cannot offer unauthorized products or services.
Referral sources are not exclusive, but franchisees must notify the other franchisee in writing before soliciting referral sources outside their protected territory. All clients serviced must be within the franchisee's protected territory. Franchisees need prior written permission from BrightStar Care to conduct staffing business outside their protected territory and must meet specific conditions to solicit or service clients outside their territory. BrightStar Care retains specific rights, including establishing franchised or company-owned agencies outside the protected territory and, under certain default conditions, within the protected territory.
BrightStar Care can grant permission to franchisees to service clients within another franchisee's protected territory if that franchisee lacks the necessary licensure or accreditation or chooses not to provide services. Conversely, BrightStar Care can allow other franchisees or company-owned locations to service clients within a franchisee's protected territory under similar circumstances. BrightStar Care also retains the right to offer, sell, operate, or distribute BrightStar branded goods and services not currently offered through the BrightStar Care Agency Program, or goods and services under another brand, through various channels, including the Internet.