Under what conditions might Brightstar Care elect to exercise interim remedies instead of immediately terminating the Franchise Agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are in default of any provision of this Agreement, we may, at our option, elect to exercise interim remedies with respect to, and/or to provide limited services for, your Agency (collectively, "Interim Remedies/Limited Services") before or instead of exercising our right to terminate this Agreement. We will provide written notice to you before implementing Interim Remedies/Limited Services. If you are in default and we have implemented Interim Remedies/Limited Services, we retain our right to terminate this Agreement at any time if you fail to cure the default. Interim Remedies/Limited Services include, without limitation:
- 13.6.1 Agency's web page(s) removed from BRIGHTSTARCARE.com;
- 13.6.2 no access to any General Marketing Fee-funded services;
- 13.6.3 no access to the Bright Connect (our intranet);
- 13.6.4 restrict eligibility to receive National Accounts referrals;
- 13.6.5 not eligible to attend any BrightStar conferences or events but still must pay required registration fees as applicable;
- 13.6.6 no access to BrightStar online training offerings;
- 13.6.7 must resign from the Franchise Advisory Committee or other BrightStar Committees, if applicable;
- 13.6.8 limited onsite support visits.
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 choose to implement interim remedies or provide limited services to a franchisee's agency if the franchisee is in default of any provision within the Franchise Agreement. This is presented as an alternative to immediate termination of the agreement. Brightstar Care will provide written notice to the franchisee before implementing these interim measures. Even with interim remedies in place, Brightstar Care retains the right to terminate the agreement at any point if the franchisee fails to correct the default.
The interim remedies and limited services that Brightstar Care may impose include several restrictions. These include removing the agency's webpage from BRIGHTSTARCARE.com, denying access to services funded by the General Marketing Fee, and restricting access to Bright Connect, Brightstar Care's intranet. Furthermore, Brightstar Care may restrict the agency's eligibility to receive National Accounts referrals, prevent attendance at Brightstar Care conferences or events (while still requiring payment of applicable registration fees), and deny access to Brightstar Care's online training offerings. The franchisee may also be required to resign from the Franchise Advisory Committee or other Brightstar Care committees, and the franchisor may limit onsite support visits.
For a prospective Brightstar Care franchisee, this means that if they breach the Franchise Agreement, Brightstar Care has the option to impose a range of penalties that stop short of full termination. These interim remedies could significantly impact the franchisee's ability to market their services, receive support from Brightstar Care, and participate in the Brightstar Care network. It is important to note that these remedies do not prevent Brightstar Care from later terminating the agreement if the franchisee fails to resolve the default. Franchisees should aim to understand what constitutes a default under the agreement to avoid such remedies.