How does Brightstar Care apply payments made by franchisees under Article 4?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
All of your payments pursuant to this Article 4 will be applied in such order as we may designate from time to time. You may not designate an order for application of any fees different from that we designate and expressly acknowledge and agree that we may accept fees paid pursuant to different instructions without any obligation to follow such instructions, even if such payment is made by its terms conditional on such instructions being followed. This provision may be waived only by written agreement signed by us, which written agreement must be separate from the check or other document or medium constituting or transmitting payment.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, all payments made by franchisees under Article 4 will be applied in an order designated by Brightstar Care. Franchisees are not allowed to specify a different order for the application of fees.
Brightstar Care explicitly states that it may accept fees paid with instructions that differ from their designated order without any obligation to follow those instructions. This means that even if a franchisee sends a payment earmarked for a specific fee, Brightstar Care reserves the right to apply it to other outstanding obligations as they see fit.
The only way a franchisee can deviate from this application of payment is through a written agreement signed by Brightstar Care. This agreement must be separate from the payment itself (e.g., not written on the check). This policy gives Brightstar Care significant control over how franchisee payments are allocated, potentially impacting franchisees' ability to manage their accounts and prioritize payments. Franchisees should be aware of this provision and seek clarification from Brightstar Care regarding their payment allocation practices.