What constitutes abandonment of a Brightstar Care agency, and what are the consequences?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ion or expiration of this Agreement, you will remove all signage bearing the Licensed Marks and, upon our request, deliver the fascia for such signs to us. We or our designated agent may enter upon the Premises at any time to make such changes at your sole risk and expense and without liability to you for trespass or compensation.
14.2 Termination Damages
If we terminate this Agreement before its scheduled expiration date due to any of your defaults (including your abandonment of the Agency), or if you terminate this Agreement without cause before its scheduled expiration date (which also will be considered your default under this
Agreement), you must pay us within fifteen (15) days after the effective date of this Agreement's termination, in addition to the other amounts specified in Section 14.1.3 above, termination damages equal to the greater of either (a) $150,000 or (b) the product of the Agency's Net Billings during the 12 months before the effective date of termination multiplied by three and that product then multiplied by 5.25%. However, if the effective date of termination is during the last three years of the franchise term, the termination damages will equal the product of the Agency's Net Billings during the 12 months before the effective date of termination multiplied by x/12—where "x" is the number of months that were remaining in the franchise term on the effective date of termination—and that product then is multiplied by 5.25%.
We and you acknowledge and agree that it would be impracticable to determine precisely the damages we will incur as a result of this Agreement's early termination.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, abandonment of the agency is considered a default that can lead to termination of the franchise agreement. If Brightstar Care terminates the agreement due to the franchisee's default, including abandonment, or if the franchisee terminates the agreement without cause before its scheduled expiration date, it will be considered a default.
Upon termination due to abandonment, the franchisee must immediately cease using any methods, procedures, technology, or other components of the BrightStar Care Agency Program. The franchisee must also stop using the Licensed Marks and any other marks associated with the program, including removing all signage and indications of operation under the BrightStar Care Agency Program from the premises. Brightstar Care or its agent has the right to enter the premises to make these changes and take possession of relevant items at the franchisee's expense without liability for trespass or compensation.
Additionally, the franchisee is obligated to disclose and satisfy any outstanding obligations to third parties. They must also transfer client lists and records to Brightstar Care or their designee and cooperate in transferring clients to providers approved by Brightstar Care. The franchisee is restricted from operating a competing business within specific geographic areas for a period of time after termination. These post-term obligations are designed to protect Brightstar Care's brand and business interests after a franchise agreement ends, especially in cases of franchisee default such as abandonment.