Upon termination of the Brightstar Care Franchise Agreement, does Brightstar Care have the right to contact the Agency's clients?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of the Franchise Agreement, we have the right to contact (at our expense) previous, current, and prospective clients and other customers to inform them that a BrightStar Care Agency no longer will operate at the Agency's location or, if we intend to exercise our Step-in Rights, that the Agency will operate under new management. We also have the right to inform them of other nearby BrightStar Agencies. Exercising these rights will not constitute interference with your contractual or business relationship with those clients or customers.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 77–79)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care has specific rights regarding client communication upon termination or expiration of the Franchise Agreement. Brightstar Care reserves the right to contact previous, current, and prospective clients, as well as other customers, to inform them that the BrightStar Care Agency will no longer operate at the Agency's location. This also applies if Brightstar Care intends to exercise its Step-in Rights, in which case they may inform clients that the Agency will operate under new management. Additionally, Brightstar Care can inform these clients of other nearby BrightStar Agencies.
This right allows Brightstar Care to maintain continuity and brand presence in the market, even after a franchise agreement ends. It ensures that clients are aware of changes in management or location and can continue receiving services through other Brightstar Care agencies. The FDD explicitly states that exercising these rights does not constitute interference with the franchisee's contractual or business relationships with those clients or customers.
For a prospective franchisee, this means that upon termination of the agreement, they will likely lose access to their client base, as Brightstar Care can directly communicate with these clients. While the franchisee may have built relationships with these clients, the franchise agreement gives Brightstar Care the right to maintain those relationships under the Brightstar Care brand. This is a significant consideration for anyone evaluating the long-term value and potential risks associated with investing in a Brightstar Care franchise.