factual

Under what circumstances can Brightstar Care revoke approval of a product or supplier?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 6.8.2 Except for those instances where we have designated a single source as noted in Section 6.8.1, if you wish to purchase any unapproved item and/or acquire approved items from an unapproved supplier, you must provide us the name, address and telephone number of the proposed supplier, a description of the item you wish to purchase, and purchase price of the item, if known. At our request, you must provide us, for testing purposes, a sample of the item you wish to purchase. Nothing in the foregoing will be construed to require us to approve any particular supplier. We may base our approval on considerations relating not only directly to the item or supplier itself, but also indirectly to the uniformity, efficiency, and quality of operation we deem necessary or desirable in our System as a whole. Nothing requires us to approve an unreasonable number of suppliers for a given item, which approval might, in our judgment, result in higher costs or prevent the effective or economical supervision of approved suppliers. We may revoke our approval of particular products or suppliers when we determine that such products or suppliers no longer meet our standards. Upon receiving 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 operating your Agency and not for any competitive business purpose.

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

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care may revoke approval of particular products or suppliers if they determine that those products or suppliers no longer meet their standards. Upon receiving written notice of such revocation, the franchisee must cease purchasing products from that supplier.

This means that while franchisees may request approval for unapproved items or suppliers, Brightstar Care retains the right to withdraw that approval if the products or suppliers fail to maintain the required standards. This ensures uniformity, efficiency, and quality within the Brightstar Care system.

For a prospective franchisee, this highlights the importance of adhering to approved suppliers and products to maintain compliance with the franchise agreement. It also underscores the need to stay informed of any changes in approved suppliers and to promptly discontinue using any supplier or product once a revocation notice is received from Brightstar Care.

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.