After the sale of a Brightstar Care agency, for how long is the seller restricted from engaging in a competing business?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
11.4.3 You covenant, for a period of twenty-four (24) months after the expiration, non-renewal or termination of this Agreement, regardless of the cause of termination, or for twenty-four (24) months after sale of the Agency or any interest in you, either directly or indirectly, for yourself or through, on behalf of, or in conjunction with any person or entity, not to own, manage, operate, maintain, engage in, consult with or have any interest in any Competing Business:
(a) Located at the premises of the former Agency;
(b) Located or operating within the Protected Territory of the former Agency;
(c) Located or operating within the protected territory of any other BrightStar Care Agency (whether owned by a franchisee, us, or our affiliates) in operation on the effective date of the expiration, non-renewal, termination, or transfer; or
(d) Located or operating within a 25-mile radius of the outer boundaries of the protected territory of any other BrightStar Care Agency (whether owned by a franchisee, us, or our affiliates) in operation on the effective date of the expiration, non-renewal, termination, or transfer.
11.4.4 You covenant, for a period of twenty-four (24) months after the expiration, non-renewal or termination of this Agreement, regardless of the cause of termination, or for twenty-four (24) months after sale of the Agency or any interest in you, not to solicit business from clients of your former Agency, from any National Accounts, or from referral sources with which your former Agency or the BrightStar System did business during the Initial Term and not to contact any of our suppliers or vendors in connection with your ownership, management, operation, maintenance of, engagement in, consulting with, or having any interest in any Competing Business.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee is restricted from engaging in a competing business for 24 months after the sale of their agency or any interest in it. This restriction applies whether the sale is direct or indirect and covers actions taken by the franchisee themselves or through another person or entity.
This non-compete agreement prevents the seller from owning, managing, operating, maintaining, engaging in, consulting with, or having any interest in a competing business within specific locations. These locations include the premises of the former agency, the protected territory of the former agency, the protected territory of any other Brightstar Care agency, or within a 25-mile radius of the outer boundaries of any other Brightstar Care agency.
Additionally, the franchisee is prohibited from soliciting business from clients of their former agency, National Accounts, or referral sources with which their former agency or the Brightstar Care system did business during the initial term. They are also restricted from contacting any of Brightstar Care's suppliers or vendors in connection with a competing business. This comprehensive non-compete clause aims to protect Brightstar Care's market share, client relationships, and proprietary information after a franchise changes hands.