Under what circumstances will a Brightstar Care franchisee be required to reimburse Brightstar Care's costs related to resolving a customer complaint?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless it is established that a third party claim asserted against you is based, directly or indirectly, on your misuse of the Licensed Marks or the BrightStar Care Agency Program, we agree to defend you against a third party claim disputing your authorized use of any Licenses Mark or the BrightStar Care Agency Program, provided you have notified us immediately after learning of the claim and fully cooperate in defending the action. Because we will defend this particular third-party claim, you are not entitled to be reimbursed for legal or other professional fees or costs paid to independent legal counsel or others in connection with the matter. However, we will reimburse your actual out-of-pocket damages suffered (but not any lost profits or consequential damages) if it is determined in the action that we did not in fact have the right to authorize you to use the Licensed Mark or the BrightStar Care Agency Program. This reimbursement obligation does not impact our rights and your obligations under Section 5.5 of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee may be responsible for costs related to claims against Brightstar Care if the claim is based on the franchisee's misuse of the Licensed Marks or the Brightstar Care Agency Program.
Specifically, if a third party brings a claim against Brightstar Care that is directly or indirectly based on the franchisee's misuse of the Licensed Marks or the Brightstar Care Agency Program, the franchisee will be responsible for cooperating with Brightstar Care in the defense of the claim.
However, Brightstar Care will defend the franchisee against third-party claims disputing the franchisee's authorized use of any Licensed Mark or the Brightstar Care Agency Program, provided the franchisee notifies Brightstar Care immediately after learning of the claim and fully cooperates in defending the action. In this case, the franchisee is not entitled to reimbursement for legal or other professional fees or costs paid to independent legal counsel.