Under what conditions can Brightstar Care terminate the franchise agreement with a 30-day cure period?
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 30-day cure period:
- 13.4.1 Failure to Comply with this Agreement or another franchise agreement between Us or any of Our Affiliates and You or any of Your Affiliates. Except as noted in Sections 13.1 through 13.3 above and Section 13.5 below, your other failures to comply with the terms and conditions of this Agreement are subject to a 30-day cure period. In addition, any default under another franchise agreement for any of the following reasons will be deemed a default under this Agreement: (i) any clinical or client care issues like those set forth in Sections 13.2.6 and 13.3.9 through 13.3.11 of this Agreement, or (ii) criminal acts, misconduct, fraud and misrepresentations like those set forth in Sections 13.2.1 through 13.2.3 of this Agreement. Your failure to pay fees owed or the failure to meet Performance Standards under another franchise agreement will not alone trigger a cross-default under this Agreement unless accompanied by a default described in (i) or (ii) above.
- 13.4.2 Failure to Service National Accounts. Unless you have formally notified us that you are opting out of servicing a specific National Account (as outlined in the Operations Manual), if you fail to: (i) sign up for National Accounts business upon completion of training, (ii) service a National Account in accordance with the National Accounts contract or bid or the guidelines contained in the Operations Manual, (iii) assist us in resolving a National Accounts service dispute, or (iv) otherwise comply with our requirements for National Accounts business as provided in this Agreement and as outlined in the Operations Manual. (The 30-day cure period does not apply to National Account defaults for which we have the right to terminate this Agreement upon notice, without providing you an opportunity to cure, under Section 13.2.17 above.)
- 13.4.3 Violation of Cross Territory Service ("Cross Territorial Policy"). You solicit and/or service clients in another franchisee's protected territory or in a territory currently served by an Agency owned by us or our affiliate without prior written permission from the owner of that territory and in violation of the Cross Territorial Policy contained in the Operations Manual.
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 if certain defaults remain uncured after a 30-day cure period. These defaults include failure to comply with the franchise agreement or another franchise agreement with Brightstar Care or its affiliates. However, failure to pay fees or meet performance standards under another franchise agreement will only trigger a cross-default if accompanied by clinical/client care issues or criminal acts/misconduct/fraud/misrepresentations.
Brightstar Care can also terminate the agreement if a franchisee fails to properly service National Accounts, unless the franchisee has formally opted out of servicing a specific National Account. This includes failing to sign up for National Accounts business after training, not servicing a National Account according to the contract or guidelines, not assisting in resolving service disputes, or otherwise not complying with requirements for National Accounts business. Note that some National Account defaults allow Brightstar Care to terminate the agreement immediately without a cure period.
Another cause for termination is violating the Cross Territory Service policy by soliciting or servicing clients in another franchisee's protected territory or a territory served by a Brightstar Care-owned agency without permission, as outlined in the Operations Manual.