What constitutes a default of the Brightstar Care Franchise Agreement related to the Control Person?

According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee will be in default of their Franchise Agreement if any of the following conditions occur regarding the designated Control Person. First, a default occurs if, at any time during the Franchise Agreement's term, the Brightstar Care agency is not under the direct supervision of the designated Control Person. Second, a default occurs if the franchisee designates a replacement Control Person without providing Brightstar Care with advance written notice and receiving approval for the change. Finally, a default occurs if any replacement Control Person does not meet Brightstar Care's then-current standards and requirements for Control Persons.

Upon the occurrence of any of these default conditions, Brightstar Care has the right to terminate the Franchise Agreement. However, Brightstar Care must first provide the franchisee with advance written notice of the default and allow a 15-day opportunity to cure the default. This means the franchisee has 15 days to correct the issue related to the Control Person to avoid termination of the agreement.

This provision is important for prospective Brightstar Care franchisees because it highlights the critical role of the Control Person in the operation of the agency. Franchisees must ensure that their agency is always under the direct supervision of a qualified Control Person who meets Brightstar Care's standards. Failure to do so can result in a default of the Franchise Agreement and potential termination of the franchise. Franchisees should also be aware of the procedures for designating a replacement Control Person and the importance of obtaining Brightstar Care's approval before making any changes.