Does Brightstar Care's approval of a franchise transfer waive any claims against the transferring party?

According to Brightstar Care's 2025 Franchise Disclosure Document, the franchisor's approval of a franchise transfer does not constitute a waiver of any claims they may have against the transferring party. This means that even after Brightstar Care approves the transfer of a franchise to a new owner, they retain the right to pursue any existing claims or legal issues against the original franchisee.

This provision protects Brightstar Care's interests by ensuring that they can address any outstanding liabilities or breaches of contract by the transferring franchisee, regardless of the transfer. For a prospective franchisee looking to sell their Brightstar Care franchise, this highlights the importance of resolving any potential disputes or outstanding obligations with the franchisor before initiating the transfer process. Failure to do so could result in ongoing liability even after the franchise has been sold.

It is also important to note that as part of the transfer process, the transferor must execute a general release of all claims against Brightstar Care and its affiliates. However, the opposite is not true: Brightstar Care does not release its claims against the transferor simply by approving the transfer. This is a standard practice in franchising, as it allows the franchisor to maintain its rights and protect its brand standards and reputation.

Therefore, any Brightstar Care franchisee considering a transfer should seek legal counsel to understand the full scope of their potential liabilities and ensure a smooth and legally sound transfer process. Addressing any outstanding issues with Brightstar Care beforehand can prevent future legal complications and financial burdens.