factual

What sections of the Brightstar Care agreement describe the non-compete covenants that the franchisee must comply with after termination?

Brightstar_Care Franchise · 2025 FDD

Answer 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, Item 22 discusses the contracts and covenants not to compete. Specifically, section 11.4.3 outlines the non-compete obligations for a period of 24 months after the expiration, non-renewal, or termination of the agreement, regardless of the cause. This restriction also applies for 24 months after the sale of the agency or any interest in it.

The non-compete clause prevents the franchisee from owning, managing, operating, maintaining, engaging in, consulting with, or having any interest in any Competing Business. This restriction applies to businesses located at the former agency's premises, within the Protected Territory of the former agency, within the protected territory of any other BrightStar Care Agency, or within a 25-mile radius of the outer boundaries of the protected territory of any other BrightStar Care Agency.

Additionally, section 11.4.4 states that for 24 months after termination, non-renewal, or expiration, a franchisee cannot solicit business from clients of their former agency, National Accounts, or referral sources with which their former agency or the BrightStar system did business during the Initial Term. They are also prohibited from contacting Brightstar Care's suppliers or vendors in connection with any Competing Business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.