What is the 'Addendum' referring to in the context of the Brightstar Care franchise agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| This addendum (the "Addendum") to the BrightStar Franchising, LLC Agency Franchise Agreement is made and entered into as of (the "Execution Date") by and between BrightStar Franchising, LLC, an Illinois limited liability company with its principal place of business at 2275 Half Day Road, Suite 210, Bannockburn, IL 60015 ("we," "us," or "our"), and with an address at (""you" or "your""). All capitalized terms not defined in this Addendum have the meanings ascribed to them in the Franchise Agreement (as defined below). This Addendum is effective on the date BrightStar signs below (the "Effective Date"). |
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| BACKGROUND |
| A. |
| On our about, the parties entered into a BrightStar |
| Franchising, LLC Agency Franchise Agreement (the "Primary Franchise Agreement") pursuant to |
| which you were granted the right and undertook the obligation to open and operate a |
| BRIGHTSTAR® |
| agency (the "Primary Agency") in the Protected Territory defined therein. |
| B. |
| Concurrently with the execution of this Addendum, the parties are signing |
| an additional BrightStar Franchising, LLC Agency Franchise Agreement (the "Franchise |
| Agreement"), to which this Addendum is attached, pursuant to which you are being granted the |
| right and undertake the obligation to open and operate a BRIGHTSTAR® |
| agency (the "Agency") in |
| the Protected Territory defined in Exhibit A. |
| C. |
| The Franchise Agreement relates to a Medium Density Market, and you |
| agree to comply with the obligations set forth in the Franchise Agreement and this Addendum in |
| connection with the Medium Density Market Territory. Franchisees who operate their franchises |
| in a Medium Density Market Territory must continue the operation of their Primary Agency in |
| order to retain their franchise rights with respect to their Medium Density Markets. |
| D. |
| You understand that your right to continue operating the Agency as a |
| Medium Density Market agency, and to retain your franchise rights for the Agency, depend on the |
| continued operation of your Primary Agency (in light of the waivers and incentives described |
| herein and in our Operations Manual upon which the Agency may rely as a result of the Primary |
| Agency's operation). The termination or expiration of the Primary Franchise Agreement for the |
| Primary Agency will result in the automatic and concurrent termination or expiration of the |
| Agency's Franchise Agreement, including this Addendum. |
| E. |
| The parties agree to amend the Franchise Agreement pursuant to the terms |
| and conditions below. |
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the 'Addendum' refers to an amendment to the existing BrightStar Franchising, LLC Agency Franchise Agreement. This addendum is made between BrightStar Franchising, LLC, and the franchisee. The addendum is effective on the date BrightStar signs it.
Several scenarios are described where an addendum might be used. One involves granting the franchisee the right to open and operate a BrightStar Care agency in a 'Small' Territory or a 'Medium Density Market'. In the case of a Medium Density Market, the franchisee must continue operating their Primary Agency to retain franchise rights for the Medium Density Market. The termination or expiration of the Primary Franchise Agreement leads to the automatic termination or expiration of the Agency's Franchise Agreement, including the addendum.
Another addendum example involves granting an expansion option, where the franchisee pays a $10,000 Expansion Option Fee for the right to open an additional BrightStar Care Agency in an Expansion Territory. This option is valid for one year following the opening of the Agency and may be extended at BrightStar's discretion. The terms of the franchise agreement for the Expansion Territory will govern and preempt the initial agreement when the franchisee signs it. The addendum also addresses the provision of Microsoft Teams Enterprise and the Microsoft's Office 365 E1 suite, which costs $14.50 per user per month.