Under what circumstances can Brightstar Care refuse a franchisee's request to use a new supplier?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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If you wish to purchase from an unapproved supplier any item or service designated to be purchased only from an approved supplier, you may request our evaluation of a proposed supplier, a description of the item you wish to purchase, and purchase price of the item, if known. While we are not required to approve any particular supplier, we may base our approval of any proposed item or supplier on considerations relating to the item or supplier itself as well as to the uniformity, efficiency, and quality of operation we deem necessary or desirable for our BrightStar Care Agency Program as a whole. We will notify you in writing (via email or otherwise) of our approval or disapproval of a proposed supplier, product, or service within 30 days after receiving all requested information. We may charge you up to $5,000 for the evaluation if we ultimately approve the supplier. However, we will charge a minimum fee of $2,500 if the vendor, as part of its proposed scope of services, will need access to any of our technology platforms; this fee goes to pay a third party for its risk-assessment services and is due whether or not we approve the supplier. We may revoke our approval of particular products or suppliers when we determine they no longer meet our standards. Upon receipt of written notice of such revocation, you must cease purchasing products from such supplier. You must use products purchased from approved suppliers solely in connection with the Agency's operation and not for any competitive business purpose. Despite these procedures, we may limit the number of approved suppliers, designate sources you must use, and refuse your requests for any reason, including because we already have designated an exclusive source (which might be us or our affiliate) for a particular item or service or believe that doing so is in the best interests of the BrightStar Care network. One of our officers owns an interest in BrightStar Technology. Otherwise, no officer or director owns an interest in a designated supplier.
You may request in writing our permission to use an alternative vendor for payroll services. Your written request must include a description of the service(s) the alternative vendor would provide, and the cost(s) of the service(s), if known. While we are not required to approve any particular vendor, we may base our approval on considerations relating to the vendor itself as well as to the uniformity, efficiency, and quality of operation we deem necessary or desirable for our BrightStar Care Agency franchise program as a whole. We will notify you in writing (via email or otherwise) of our approval or disapproval of a proposed alternative payroll vendor within 30 days after receiving all requested information. If we grant your request, you will be allowed to use such vendor's payroll software and will not be required to use ABS's payroll-related functions. We may revoke our approval of the vendor when we determine it no longer meets our standards.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 41–44)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care has broad discretion to refuse a franchisee's request to use a new supplier. While Brightstar Care is not required to approve any particular supplier, they may base their approval on considerations relating to the item or supplier itself as well as to the uniformity, efficiency, and quality of operation they deem necessary or desirable for the BrightStar Care Agency Program as a whole. Brightstar Care will notify the franchisee in writing (via email or otherwise) of their approval or disapproval of a proposed supplier, product, or service within 30 days after receiving all requested information.
Brightstar Care may limit the number of approved suppliers, designate sources franchisees must use, and refuse requests for any reason. This includes situations where Brightstar Care already has designated an exclusive source (which might be Brightstar Care or its affiliate) for a particular item or service. Brightstar Care can also refuse a request if they believe that doing so is in the best interests of the BrightStar Care network.
For certain items and services designated to be purchased only from an approved supplier, a franchisee may request an evaluation of a proposed unapproved supplier. Brightstar Care may charge up to $5,000 for the evaluation if they ultimately approve the supplier. However, they will charge a minimum fee of $2,500 if the vendor, as part of its proposed scope of services, will need access to any of Brightstar Care's technology platforms; this fee goes to pay a third party for its risk-assessment services and is due whether or not Brightstar Care approves the supplier. Brightstar Care may revoke approval of particular products or suppliers when they determine they no longer meet their standards.
Brightstar Care also requires franchisees to purchase certain approved services and products, which may periodically include Proprietary Products, only from Brightstar Care, their affiliates, or other suppliers or distributors they approve or designate. Franchisees must purchase all signs, uniforms, drug screening services, and medical supplies (where alternative sources of supply are unavailable) from Brightstar Care, designated suppliers or approved suppliers. Franchisees must use designated suppliers for medical supplies (where alternative sources of supply are unavailable), marketing materials, credit card processing services, payroll services (unless Brightstar Care approves a request to use an alternative supplier), drug screening, insurance brokerage for all types of insurance coverage except employee benefits, and email, unless Brightstar Care grants an exception.