Under what conditions can Brightstar Care automatically terminate a franchise agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to terminate this Agreement if any of the following defaults remains uncured after expiration of the 90-day cure period:
- 13.5.1 Full-Time, Fully-Trained Salesperson. You fail to hire and maintain a fulltime, fully-trained salesperson for the Agency unless a waiver was approved for the current calendar year.
- 13.5.2 Full-Time, Fully-Trained Branch Manager/Operations Manager. You fail to hire and maintain a full-time, fully-trained branch manager/operations manager for the Agency unless a waiver was approved for the current calendar year.
- 13.5.3 Training New Personnel. You fail to fully train a newly-hired Agency salesperson, branch manager/operations manager, or Director of Nursing within ninety (90) days after you hire them.
- 13.5.4 Agency Net Promotor Score. You fail to ensure that the Agency's Net Promoter Score (NPS) remains in (a) the top seventy-five percent (75%) of the Net Promoter Scores of all BrightStar Care Agencies and (b) the top fifty percent (50%) of the Net Promoter Scores prevailing in the home healthcare business industry as a whole, including both franchised and non-franchised home healthcare businesses.
- 13.5.5 Employee Engagement Score. You fail to ensure that the Agency's employee engagement score (eNPS) remains in (a) the top seventy-five percent (75%) of the employee engagement scores of all BrightStar Care Agencies and (b) the top fifty percent (50%) of the employee engagement scores prevailing in the home healthcare business industry as a whole, including both franchised and non-franchised home healthcare businesses.
- 13.5.6 Retention of Field Staff. You fail to ensure that the Agency (a) remains in the top seventy-five percent (75%) of all BrightStar Care Agencies for retention of field staff and (b) does not experience six (6)-month employee turnover in excess of fifty percent (50%).
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care can terminate the franchise agreement with a 90-day notice if the franchisee fails to maintain certain performance standards after receiving notice and an opportunity to cure the issues. These standards relate to the quality and management of the Brightstar Care agency.
Specifically, Brightstar Care may terminate the agreement if the franchisee fails to hire and maintain a full-time, fully-trained salesperson or a full-time, fully-trained branch manager/operations manager for the agency, unless a waiver was approved for the current calendar year. Additionally, Brightstar Care can terminate the agreement if the franchisee fails to fully train a newly-hired agency salesperson, branch manager/operations manager, or Director of Nursing within 90 days after they are hired.
Furthermore, Brightstar Care can terminate the agreement if the agency's Net Promoter Score (NPS) or employee engagement score (eNPS) falls below certain thresholds. The NPS must remain in the top 75% of all Brightstar Care agencies and the top 50% of the home healthcare business industry. The eNPS must also remain in the top 75% of all Brightstar Care agencies and the top 50% of the home healthcare business industry. Finally, Brightstar Care can terminate the agreement if the agency's retention of field staff is not in the top 75% of all Brightstar Care agencies or if the agency experiences six-month employee turnover exceeding 50%.