What are the conditions under which the Brightstar Care Trademark License Agreement can be terminated?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
We derive our right to use and sublicense the Marks from an Amended and Restated Trademark License Agreement (the "Trademark License Agreement") dated September 1, 2009, with Bright Star Nevada. Under the terms of the Trademark License Agreement, we have the exclusive right in the United States of America to use and sublicense the Marks in connection with the offer and sale of franchises to third parties. Specifically, Bright Star Nevada has licensed us the right to use and sublicense the Marks in operating Agencies offering medical and/or non-medical home health, medical and nursing personnel placement, and recruiting and staffing services. The Trademark License Agreement is for the United States of America and is exclusive. The Trademark License Agreement may be terminated by mutual agreement of the parties. Additionally, either party may terminate the Trademark License Agreement in the event of: (i) any material breach of an obligation by the other party, which breach is capable of being, but is not, cured within 60 days after written notice of the breach to the breaching party; or (ii) any situation in which a party commits a material breach of the Trademark License Agreement that is not capable of being cured within 60 days and the non-breaching party provides written notice of the breach and notice of termination.
Source: Item 13 — TRADEMARKS (FDD pages 75–77)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the Trademark License Agreement, dated September 1, 2009, outlines the conditions for its termination. The agreement can be terminated by mutual agreement between Bright Star Nevada and Brightstar Care.
Additionally, either party has the right to terminate the Trademark License Agreement if the other party commits a material breach of their obligations. If the breach can be resolved, the breaching party has 60 days after receiving written notice to correct the breach. If the breach is not curable within this 60-day period, the non-breaching party can provide written notice of the breach and notice of termination, effectively ending the agreement.
This means that as a Brightstar Care franchisee, your right to use the Brightstar Care trademarks is dependent on the continuation of this Trademark License Agreement. If Brightstar Care loses its right to sublicense the trademarks due to a breach or termination of the agreement with Bright Star Nevada, your franchise could be significantly impacted. It is important to understand the terms of this agreement and how any potential breaches could affect your franchise.