What specific clause is prohibited in the crime coverage for Brightstar Care franchisees?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
of your business.
- (i) Crime coverage responding to employee theft from you or theft of your clients' property with a minimum $25,000 limit per incident and must not contain a
Source: Item 6 — OTHER FEES (FDD pages 17–34)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees must secure crime coverage that does not include a Conviction Clause. This crime coverage is intended to protect the franchisee from employee theft or theft of clients' property, with a minimum limit of $25,000 per incident.
The prohibition of a Conviction Clause means that Brightstar Care franchisees can make a claim on their crime insurance even if the employee responsible for the theft has not been convicted of a crime. Standard crime insurance policies often include a Conviction Clause, requiring a criminal conviction before the insurance company pays out on a claim. By mandating coverage without this clause, Brightstar Care aims to provide broader protection to its franchisees.
This requirement ensures that Brightstar Care franchisees can recover losses from employee theft more efficiently, without waiting for the outcome of potentially lengthy and uncertain legal proceedings. This can be particularly important in the home care business, where trust and security are paramount, and any incidents of theft can significantly damage a franchisee's reputation and financial stability.