conditional

Under what circumstances must I reimburse Brightstar Care for losses?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

ched as Exhibit M.

NOTE 5: Electronic Visit Verification ("EVV") is required by some states when a franchisee participates in certain Medicaid waiver programs. If required by the state, this fee covers the cost of integrating ABS with the state aggregators or third party/ies selected by the state. If any fees are charged to use a state-specified EVV system, that cost is your responsibility. The integration enables the data required to authorize and approve payment to flow automatically between ABS and the state. Without this automation, the state may require the franchisee to enter the data manually on its portal or website. The one-time fee per aggregator covers the initial set-up and testing of the integration. Most states require integration with only one aggregator, while other states might require integration with up to 2 aggregators. The on-going "per record" charge covers the ongoing maintenance costs of supporting the integration and on-going changes required by the state. It is your responsibility to understand your state's EVV requirements and notify us with sufficient lead time to integrate into ABS. You must notify BrightStar Technology no less than 90 days before the state's implementation date, or any subsequent EVV version upgrade dates, to allow sufficient time for integrating ABS and/or updating ABS with EVV version upgrades.

If you notify BrightStar Technology less than 90 days before either your state's implementation date or your state's subsequent EVV version upgrade implementation dates, BrightStar Technology may charge you up to an additional $1,000 for the initial integration, and up to an additional $500 for any subsequent EVV version upgrade, required by the state.

You have the option of using another state EVV provider whom we approve; however, you still must pay us the $1,000 integration fee per aggregator and $500 for each EVV version upgrade required by the state. All other fees required by the third-party provider would be paid directly by you to the third-party provider.

NOTE 6. Insurance Policies. We identify the types and minimum insurance coverage you must carry in our Operations Manual. You must obtain insurance coverage only from the agencies and carriers we designate. We make no representation that the coverage will be sufficient for your business purposes. You need to evaluate if your business will require broader coverage, higher limits, or additional types of insurance also available through the approved agency. Some of these insurance policies may include free Human Resources advice accessible by hotline. Any and all coverage contemplated must insure both skilled and non-skilled home care and temporary medical staffing. For each line of Liability coverage below, you must name BrightStar Group Holdings, Inc., a Delaware corporation, its subsidiaries, officers, directors, and employees, and any other person or entity we may designate in the future as Additional Insureds.

Source: Item 6 — OTHER FEES (FDD pages 17–34)

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees may be required to reimburse Brightstar Care under specific circumstances related to Electronic Visit Verification (EVV) and franchise transfers.

If a Brightstar Care franchisee notifies BrightStar Technology less than 90 days before their state's EVV implementation date or any subsequent EVV version upgrade dates, BrightStar Technology may charge the franchisee up to an additional $1,000 for the initial integration and up to an additional $500 for any subsequent EVV version upgrade required by the state. Even if the franchisee opts to use another state-approved EVV provider, they are still obligated to pay Brightstar Care a $1,000 integration fee per aggregator and $500 for each EVV version upgrade mandated by the state.

Additionally, if a franchisee transfers their Brightstar Care franchise without listing it for sale with Brightstar Care and the transferee was a lead of Brightstar Care's before the franchisee became aware of them, the franchisee (or the transferee) must pay Brightstar Care the greater of the applicable transfer fee or the initial franchise fee that Brightstar Care would have collected from the lead, plus any broker fees incurred due to the transfer. This condition applies to all franchisees in the Brightstar Care system, regardless of when they became franchisees.

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.