Under the Franchise Agreement, is a Brightstar Care franchisee prohibited from participating in Medicare programs?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Franchise Agreement prohibits you from participating in Medicare or other governmental payor programs, with the exception of programs funded by the United States Department of Veterans Affairs, Department of Veterans Health Administration (VA). You may
participate in State Medicaid and Medicaid Waiver programs, as well as Medicare Advantage supplemental benefits personal care ser
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–14)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees are generally prohibited from participating in Medicare or other governmental payor programs. However, there is a specific exception to this rule. Brightstar Care franchisees are allowed to participate in programs funded by the United States Department of Veterans Affairs, specifically the Department of Veterans Health Administration (VA).
This restriction on Medicare participation could significantly impact a franchisee's potential revenue streams, as Medicare is a major source of funding for healthcare services, especially for the senior population who often require home care. The exception for VA programs is a notable benefit, allowing franchisees to tap into a specific government-funded avenue for providing care to veterans.
Prospective franchisees should carefully consider the implications of this restriction and the potential impact on their business model and revenue projections. It would be prudent to investigate the availability and demand for VA-funded programs in their specific territory to understand the potential benefits of this exception. Additionally, franchisees may want to inquire about the possibility of participating in State Medicaid and Medicaid Waiver programs, as well as Medicare Advantage supplemental benefits personal care services, to further diversify their revenue streams.