Does Brightstar Care's approval apply to a site proposed for purchase by an affiliate of the franchisee?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Your right to exercise the expansion option granted under this Agreement and enter into a BrightStar Franchising, LLC Agency franchise agreement for the Expansion Territory is conditioned upon your having fulfilled all of the following conditions:
- (a) You demonstrate to BrightStar's written satisfaction that you have satisfied all of BrightStar's then-current expansion policy requirements to open and operate an additional BrightStar Care Agency in the Expansion Territory, which may include, without limitation, minimum Net Billings that your Agency must achieve and a minimum amount of liquidity for you and/or your affiliates:
- (b) At the time of your exercise of the expansion option, you must have fully performed and otherwise be in compliance with all your obligations under the Franchise Agreement between you (or your affiliates) and BrightStar and under all other agreements which may then be in effect between BrightStar (or its parent, or the affiliates, subsidiaries and designees of both entities) and you (or your affiliates);
- (c) You must not be in default of any provision of the Franchise Agreement, and any amendments or replacement of the Franchise Agreement, or any other agreement with BrightStar (or its parent, or the affiliates, subsidiaries and designees of either entity) and you must have substantially complied with all of the terms and conditions of such agreements during their terms;
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
Based on the 2025 Brightstar Care Franchise Disclosure Document, the approval for an expansion territory is contingent upon several conditions, some of which involve the franchisee's affiliates. Specifically, to exercise the expansion option, the franchisee must demonstrate to BrightStar Care's written satisfaction that they have met all current expansion policy requirements. These requirements may include minimum net billings and a minimum amount of liquidity for the franchisee and/or their affiliates.
Furthermore, at the time of exercising the expansion option, the franchisee (or their affiliates) must be in full compliance with all obligations under the Franchise Agreement and any other agreements with BrightStar Care (or its parent, subsidiaries, affiliates, and designees). This encompasses not being in default of any provision of the Franchise Agreement or any other agreement with BrightStar Care and having substantially complied with all terms and conditions of such agreements throughout their terms.
In summary, while the FDD does not explicitly state that Brightstar Care's approval extends to a site proposed for purchase by an affiliate, it does indicate that the financial health and compliance of the franchisee's affiliates are considered when evaluating the franchisee's eligibility for expansion. Therefore, a prospective franchisee should clarify with Brightstar Care the specific criteria for site approval and how an affiliate's involvement in the site purchase would be evaluated.