After termination of a Brightstar Care franchise, is a franchisee prohibited from soliciting business from referral sources with which the BrightStar System did business?

According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee is restricted from soliciting business from specific entities after the termination, non-renewal, or expiration of the franchise agreement. Specifically, for a period of 24 months, the franchisee is prohibited from soliciting business from clients of their former Brightstar Care agency, from any National Accounts, and from referral sources with which their former agency or the BrightStar Care System conducted business during the Initial Term. This restriction also extends to contacting Brightstar Care's suppliers or vendors in connection with any competing business the former franchisee might engage in.

This post-term obligation is significant for a prospective Brightstar Care franchisee because it limits their ability to immediately compete with Brightstar Care or other franchisees after leaving the system. The restriction applies regardless of the reason for termination, including expiration, non-renewal, or termination for cause. It also applies for 24 months after the sale of the agency or any interest in it.

The non-solicitation clause aims to protect Brightstar Care's established relationships and goodwill. By preventing former franchisees from leveraging these connections, Brightstar Care seeks to maintain a competitive advantage and protect its network. This type of restriction is common in franchising to safeguard the brand and the interests of existing franchisees.

For a potential franchisee, it's crucial to understand the scope and duration of this restriction. It could impact their future business opportunities if they decide to exit the Brightstar Care system and pursue a similar venture. Careful consideration should be given to these post-term obligations before entering into a franchise agreement with Brightstar Care.