After the termination of the Brightstar Care franchise agreement, is a franchisee prohibited from operating a competing business within the protected territory of another Brightstar Care agency?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
tional Accounts payor, Medicare Advantage, Medicaid, etc.)); (c) case management and care management services; and/or
- (d) any other services, technology or devices, or products BrightStar may now or in the future authorize you to offer or sell in connection with the Agency's operation.
- 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;
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to the 2025 Brightstar Care Franchise Disclosure Document, a franchisee is restricted from engaging in a competing business within certain areas after the termination, non-renewal, or expiration of the franchise agreement. This restriction applies for a period of 24 months, regardless of the reason for termination.
Specifically, the franchisee is prohibited from owning, managing, operating, maintaining, engaging in, consulting with, or having any interest in a competing business located or operating within the protected territory of any other Brightstar Care agency. This includes agencies owned by other franchisees, Brightstar Care itself, or its affiliates that were in operation on the date of termination, non-renewal, expiration, or transfer.
Furthermore, this restriction extends to operating within a 25-mile radius of the outer boundaries of the protected territory of any other Brightstar Care agency that was in operation on the effective date of the expiration, non-renewal, termination, or transfer. This broad restriction aims to protect the existing Brightstar Care agencies from competition by a former franchisee, ensuring the stability and value of the franchise system.