Under the Brightstar Care Franchise Agreement, can changes to standards and specifications materially alter a franchisee's fundamental rights?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
We formulate and modify our standards and specifications for products and services based upon marketplace and reimbursement changes, the collective experience of our franchisees and our company-owned locations, and our franchise support center personnel. We have the right to change our standards and specifications, including those for products, services, signs, and medical supplies, by written notice to you or through changes in the Operations Manual. You may incur an increased cost to comply with these changes at your own expense; however, no change will materially alter your fundamental rights under the Franchise Agreement. We will notify you of any change to our standards and specifications by way of electronic or written amendments to the Operations Manual or otherwise in writing.
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 has the right to modify the standards and specifications for products and services. These changes can be made through written notice or updates to the Operations Manual. Franchisees may incur increased costs to comply with these changes. However, the FDD states that these changes will not materially alter a franchisee's fundamental rights under the Franchise Agreement.
This means that while Brightstar Care can update its operational requirements, such as those for products, services, signs, and medical supplies, these changes should not fundamentally change the franchisee's core rights as defined in the Franchise Agreement. Brightstar Care is obligated to notify franchisees of any changes to standards and specifications in writing, either through amendments to the Operations Manual or other written communication.
For a prospective franchisee, this clause provides some assurance that the franchisor cannot unilaterally change the core terms of the agreement through modifications to standards and specifications. However, it's important to understand what Brightstar Care considers to be 'fundamental rights' and how those rights are defined in the Franchise Agreement. A prospective franchisee should carefully review the Franchise Agreement to fully understand their rights and consult with a legal professional to assess the implications of this clause.