What annual revenue range is associated with the collateral assignment of lease for a Brightstar Care franchise?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Assignor represents and warrants to Assignee that it has full power and authority to so assign the Lease and its interest therein and that Assignor has not previously, and is not obligated to, assign or transfer any of its interest in the Lease or the Premises.
Upon a default by Assignor under the Lease or under the franchise agreement for a BrightStar Care Agency Program between Assignee and Assignor (the "Franchise Agreement"), or in the event of a default by Assignor under any document or instrument securing the Franchise Agreement, or upon expiration or termination of the Franchise Agreement, Assignee will have the right and is hereby empowered to take possession of the Premises, expel Assignor therefrom, and, in such event, Assignor will have no further right, title or interest in the Lease.
Assignor agrees it will not allow or permit any surrender, termination, amendment or modification of the Lease without the prior written consent of Assignee. Through the term of the Franchise Agreement and any renewals thereto, Assignor agrees that it may elect and exercise all options to extend the term of or renew the Lease not less than thirty (30) days prior to the last day that such option must be exercised, unless Assignee otherwise agrees in writing. Upon failure of Assignee to otherwise agree in writing, and upon failure of Assignor to so elect to extend or renew the Lease as stated herein, Assignor hereby appoints Assignee as its true and lawful attorney-in-fact to exercise such extension or renewal options in the name, place and stead of Assignor for the sole purpose of effecting such extension of renewal.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
Based on the 2025 Brightstar Care Franchise Disclosure Document, there is no mention of a specific annual revenue range connected to the collateral assignment of a lease. The FDD excerpts discuss the conditions under which a lease can be assigned, such as in the event of default or termination of the franchise agreement. It also outlines the franchisor's rights to take possession of the premises under certain circumstances. However, it does not provide any information about how a Brightstar Care franchise's revenue might affect or be affected by this process.
While the FDD details the process and conditions for assigning a lease, it does not specify any revenue thresholds or ranges that would trigger or be associated with such an assignment. The document focuses more on the legal and procedural aspects of the lease assignment rather than the financial performance of the franchise.
Therefore, a prospective Brightstar Care franchisee should directly ask the franchisor about any internal policies or guidelines that relate a franchise's revenue performance to the collateral assignment of a lease. This information would be crucial for understanding the financial implications and potential risks associated with the lease agreement.