factual

Under the Business Associate and Confidentiality Agreement, who is considered the 'Covered Entity' in relation to Brightstar Care?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

BUSINESS ASSOCIATE AND CONFIDENTIALITY AGREEMENT

("Covered Entity") and BrightStar Franchising, LLC ("BrightStar" or "Business Associate") hereby enter into this Agreement, effective as of Effective Date of the Franchise Agreement (the "Effective Date").

Recitals

  • A. BrightStar arranges for certain products and services (the "Services") as a franchisor, to Covered Entity as a franchisee, as set forth in the BrightStar Franchising, LLC Agency Franchise Agreement between Covered Entity and BrightStar ("Franchise Agreement").
  • B. The Parties' performance under the Franchise Agreement may or will require Covered Entity to disclose and/or provide to Business Associate private and/or protected health and/or medical information as defined under, and governed by, applicable state law and Individually Identifiable Health Information and/or Electronic Protected Health Information as defined in the Health Insurance Portability and Accountability Act ("HIPAA"), the Health Information Technology for Economic and Clinical Health Act ("HITECH"), and/or regulations promulgated under such laws (state law, HIPAA, and HITECH are hereafter referred to collectively as "Privacy Laws") and may or will require BrightStar to receive, access, review, maintain, retain, modify, record, store, forward, produce, hold, use, create, disclose, and/or destroy such information (the "PHI").
  • C. BrightStar's performance of the Services may give rise to certain legal obligations under Privacy Laws and BrightStar may be considered a "business associate" and franchisee may be a "covered entity" as those terms are defined in 45 C.F.R. § 160.103. This Agreement will not apply to relationships between the parties where BrightStar is not considered a "business associate" as defined in 45 C.F.R. 160.103.

Source: Item 22 — CONTRACTS (FDD pages 117–118)

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, the 'Covered Entity' in the Business Associate and Confidentiality Agreement is the franchisee. BrightStar Franchising, LLC ('BrightStar') is considered the 'Business Associate'.

This agreement is crucial because Brightstar Care franchisees may be required to disclose private and protected health information. This information is governed by state law, HIPAA (Health Insurance Portability and Accountability Act), and HITECH (Health Information Technology for Economic and Clinical Health Act). BrightStar, as the Business Associate, may need to receive, access, review, maintain, and use this protected health information (PHI) to perform its services.

Brightstar Care's performance of services under the franchise agreement may create legal obligations under Privacy Laws, where BrightStar is considered a 'business associate' and the franchisee is a 'covered entity'. This agreement is only applicable when BrightStar is considered a 'business associate' as defined in 45 C.F.R. § 160.103.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.