Under what conditions can Brightstar Care revoke its approval of an alternative payroll vendor?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You may request in writing our permission to use an alternative vendor for payroll services. Your written request must include a description of the service(s) the alternative vendor would provide, and the cost(s) of the service(s), if known. While we are not required to approve any particular vendor, we may base our approval on considerations relating to the vendor itself as well as to the uniformity, efficiency, and quality of operation we deem necessary or desirable for our BrightStar Care Agency franchise program as a whole. We will notify you in writing (via email or otherwise) of our approval or disapproval of a proposed alternative payroll vendor within 30 days after receiving all requested information. If we grant your request, you will be allowed to use such vendor's payroll software and will not be required to use ABS's payroll-related functions. We may revoke our approval of the vendor when we determine it no longer meets our standards. Upon receipt of written notice of such revocation, you must cease purchasing payroll-related services from such vendor. You must use services purchased from approved alternative vendors solely in connection with the Agency's operation and not for any competitive business purpose. Despite these procedures, we may refuse your requests for any reason, including because we believe that doing so is in the best interests of the BrightStar Care network.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 41–44)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care may revoke its approval of an alternative payroll vendor if they determine that the vendor no longer meets their standards. If Brightstar Care revokes approval, they will provide written notice to the franchisee, who must then cease purchasing payroll-related services from the vendor.
Prior to using an alternative payroll vendor, a Brightstar Care franchisee must request written permission from Brightstar Care, including a description of the services and costs of the alternative vendor. Brightstar Care will then notify the franchisee in writing of their approval or disapproval within 30 days of receiving all requested information. Brightstar Care may base its approval on considerations relating to the vendor itself, as well as the uniformity, efficiency, and quality of operation they deem necessary for the BrightStar Care Agency franchise program.
Brightstar Care retains significant control over approved vendors and may refuse a franchisee's request to use an alternative payroll vendor for any reason, including if they believe it is in the best interests of the BrightStar Care network. This allows Brightstar Care to maintain consistency and quality across all franchise locations, but it also limits the franchisee's autonomy in choosing vendors.