After the termination of the Brightstar Care franchise agreement, what geographic areas are covered by the non-compete covenant?
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.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, after the franchise agreement ends, a franchisee is subject to a non-compete covenant that restricts their business activities for 24 months. This covenant applies regardless of whether the termination is due to expiration, non-renewal, or any other cause. It also applies for 24 months after the sale of the agency or any interest in it.
The non-compete prevents the franchisee from owning, managing, operating, maintaining, engaging in, consulting with, or having any interest in a Competing Business within specific geographic areas. These areas include the premises of the former Brightstar Care agency, the Protected Territory of the former agency, and the protected territory of any other Brightstar Care agency in operation on the date of termination, non-renewal, or transfer.
Furthermore, the non-compete extends to a 25-mile radius from the outer boundaries of the protected territory of any other Brightstar Care agency in operation on the effective date of the expiration, non-renewal, termination, or transfer. This broad geographic restriction aims to prevent former franchisees from leveraging Brightstar Care's goodwill and confidential information to compete against the franchise system.