What is the amount of the Expansion Option Fee that a Brightstar Care franchisee must pay?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| GMF expense | was | $12,493,237 | and | $12,572,362 | for the | years ended |
2. Grant of Expansion Option
Subject to the terms and conditions of this Agreement and the Franchise Agreement, BrightStar grants to you, and you accept, an option to acquire from BrightStar the right to open and operate an additional BrightStar Care Agency in the Expansion Territory. In consideration of your payment of the Expansion Option Fee (defined below), BrightStar agrees that it will not offer or sell the right to open and operate a BrightStar Care Agency in the Expansion Territory to any third party during the Option Period (defined below) of this Agreement.
3. Expansion Option Fee
In consideration for BrightStar granting the expansion option under this Agreement, you agree to pay BrightStar a fee equal to Ten Thousand Dollars ($10,000) (the "Expansion Option Fee"). This sum will be due in full when you sign this Agreement and will be considered fully earned by BrightStar when paid, in consideration of BrightStar granting you the expansion option. The Expansion Option Fee is not refundable in whole or in part under any circumstance, including if the expansion option granted to you under this Agreement lapses. However, if you exercise your option and ent
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee who wishes to acquire the option to open an additional Brightstar Care Agency in an expansion territory must pay an Expansion Option Fee of $10,000. This fee grants the franchisee the right to open and operate an additional Brightstar Care Agency in the Expansion Territory. Brightstar Care agrees not to offer or sell the right to open and operate in the Expansion Territory to any third party during the Option Period.
The Expansion Option Fee is due in full when the agreement is signed and is considered fully earned by Brightstar Care upon payment. This fee is non-refundable, even if the expansion option lapses. However, if the franchisee exercises the option and enters into a Brightstar Franchising, LLC Agency franchise agreement for the Expansion Territory during the Option Period, Brightstar Care will credit the $10,000 Expansion Option Fee toward the Initial Franchise Fee payable under the new franchise agreement.
The option to expand must be exercised within one year following the opening of the initial agency. Brightstar Care may extend this Option Period at its discretion if the franchisee is making sufficient progress toward meeting the requirements for exercising the expansion option. This expansion option allows existing Brightstar Care franchisees to secure the rights to additional territories, providing a pathway for growth within the Brightstar Care franchise system.