Under what circumstances might Brightstar Care terminate the Franchise Agreement or remove a franchisee from the National Accounts program related to service provision to National Accounts customers?

According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care has specific rights regarding a franchisee's participation in the National Accounts program. If a franchisee fails to provide services to a National Accounts customer without formally notifying Brightstar Care that they are opting out of servicing that specific customer, Brightstar Care may take action. This action can include either terminating the Franchise Agreement or removing the franchisee from the National Accounts program, either in whole or in part.

This provision is significant for prospective franchisees because it highlights the importance of fulfilling obligations related to National Accounts. National Accounts are defined as customers who manage or control businesses in multiple franchisee territories. Brightstar Care requires franchisees to sign up for National Accounts business after initial training and to service the referred accounts according to the National Accounts contract and Operations Manual guidelines.

Failure to comply with these requirements can lead to serious consequences, including termination of the franchise agreement. However, the franchisee has the option to formally opt out of servicing a specific National Account, as outlined in the Operations Manual, which would prevent termination or removal from the program for that specific account. Franchisees should carefully review the Operations Manual to understand the proper procedures for opting out of servicing a National Account to avoid potential penalties.

Additionally, Brightstar Care retains the exclusive right to negotiate and enter into agreements to provide services to National Accounts customers. Franchisees are generally not allowed to solicit business from, provide services to, or negotiate rates directly with National Accounts clients without prior written consent from Brightstar Care. This restriction applies even within the franchisee's protected territory, emphasizing the franchisor's control over National Accounts relationships.