What are the specific requirements for Brightstar Care franchisees regarding servicing National Accounts to avoid termination?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.6.5 Upon completion of your initial training, you must sign up to receive National Accounts business and (except as provided in the Operations Manual) service any
National Accounts we refer to you in accordance with the National Accounts contract and the guidelines set forth in the Operations Manual, including any service requirements based upon the National Accounts gross margin percentages identified in the Operations Manual.
- 1.6.8 In addition, if you fail to provide services to a National Accounts customer and have not formally notified us, as outlined in the Operations Manual, that you are opting out of servicing that specific National Accounts customer, we may either terminate this Agreement in accordance with Section 13.4.2 or remove you in whole or in part from the National Accounts program.
(d) Periodically designate in the Operations Manual or elsewhere National Accounts. The term "National Accounts" means any customer which on its own behalf or through agents, franchisees, or other third parties owns, manages, services, controls or otherwise has responsibility for a business in more than one (1) franchisee's protected territory, including, but not limited to, institutional customers such as hospital chains, insurance companies, referral services, nursing homes, senior citizen centers, hospice facilities, facilities for the mentally and physically impaired, and elder and/or child daycare facilities or facilities providing homecare services to individuals, whose presence is not confined within any one particular franchisee's protected territory, regardless of the aggregate contract amount of the services you wish to perform. We may designate an account as a National Account at any time and we, in our sole discretion, will resolve any dispute as to whether a particular customer is a National Account; our determination will be final and binding. As described in Section 1.6.4, we have the exclusive right to negotiate and enter into agreements or approve forms of agreements providing supplemental healthcare staff or healthcare and homecare services to institutional clients and comprehensive care to any business which owns, manages, controls, services or otherwise has responsibility for services in more than one protected territory of our franchisees, regardless of the aggregate contract amount of the services you want to perform. As described in Section 1.6.5 below, you must sign-up to receive National Accounts business and (except as provided in the Operations Manual) service any National Accounts we refer to you in accordance with the terms of the National Accounts contract and the guidelines set forth in the Operations Manual. You may not solicit business from, provide services to, or negotiate rates directly with any National Accounts client without our prior written consent, which consent will not be unreasonably withheld. The restrictions in this section (d) apply anywhere, including within your Protected Territory.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees must adhere to specific requirements regarding National Accounts to avoid potential termination or removal from the National Accounts program. Upon completing initial training, franchisees must sign up to receive National Accounts business. Franchisees are then expected to service any National Accounts referred to them by Brightstar Care, following the terms of the National Accounts contract and the guidelines outlined in the Operations Manual, including service requirements based on gross margin percentages. Brightstar Care retains the exclusive right to negotiate and enter into agreements with National Accounts customers on behalf of its franchisees, unless otherwise delegated in writing. Franchisees are prohibited from soliciting business from, providing services to, or negotiating rates directly with National Accounts without prior written consent from Brightstar Care.
To avoid termination or removal from the National Accounts program, a Brightstar Care franchisee must not fail to provide services to a National Accounts customer without formally notifying Brightstar Care, as detailed in the Operations Manual, that they are opting out of servicing that specific customer. If a franchisee fails to meet these obligations, Brightstar Care reserves the right to either terminate the franchise agreement or remove the franchisee from the National Accounts program.
These stipulations are important for prospective franchisees to understand, as they highlight the importance of National Accounts to the Brightstar Care business model and the potential consequences of non-compliance. Franchisees should carefully review the Operations Manual and the National Accounts contract to fully understand their obligations and the specific service requirements. It is also important to note that Brightstar Care has the authority to designate accounts as National Accounts and resolve any disputes regarding this designation, with their decision being final and binding.