Is the Assignor permitted to engage in disparaging communications regarding Brightstar Care, its affiliates, or franchisees after transferring their interest in the Franchised Business?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Assignor agrees that, upon transfer of its interest in the Franchised Business to Assignee, Assignor will 1) comply with all posttermination obligations set forth in Sections and of the Old Franchise Agreement, which obligations shall be incorporated herein by reference, 2) comply with any other provisions of the Old Franchise Agreement which, by their nature, survive termination or expiration of the Old Franchise Agreement, 3) not engage in any disparaging communications (whether verbal, written, online or through any social media platform) regarding BrightStar, its affiliates, its franchisees, employees, officers, agents, directors or suppliers, and 4) pay all outstanding invoices with Franchisor's preferred vendors and all outstanding creditors within 30 days after the Hard Closing Date.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, an assignor (the seller of a franchise) is prohibited from making disparaging communications after transferring their interest in the Franchised Business to an assignee. Specifically, the assignor cannot engage in any disparaging communications, whether verbal, written, online, or through any social media platform, regarding BrightStar, its affiliates, its franchisees, employees, officers, agents, directors, or suppliers. This restriction is part of the assignor's post-termination obligations.
This provision protects Brightstar Care's brand reputation and the relationships within its franchise network. By preventing former franchisees from making negative statements, Brightstar Care aims to maintain a positive image and prevent potential damage to the business. This is a fairly standard clause in franchise agreements, as franchisors typically want to protect their brand from negative publicity, even after a franchisee has left the system.
For a prospective franchisee, this clause highlights the importance of maintaining a positive relationship with Brightstar Care, even when selling their franchise. Failure to comply with this provision could result in legal action or other penalties. It also underscores the need to carefully consider the implications of selling a franchise, as certain obligations continue even after the transfer is complete.