What constitutes an unauthorized transfer that would violate the Brightstar Care franchise agreement?

According to Brightstar Care's 2025 Franchise Disclosure Document, an unauthorized transfer occurs when a franchisee or their owners make a transfer in violation of Section 12 of the franchise agreement. Section 12 outlines the conditions and requirements for obtaining Brightstar Care's consent to transfer any interest in the franchise or any equity or voting interest in the franchisee.

To avoid an unauthorized transfer, a Brightstar Care franchisee must adhere to the stipulations laid out in Section 12. This includes obtaining Brightstar Care's approval, ensuring the transferee meets all requirements for becoming a franchisee, and fulfilling all financial and operational obligations. The franchisee must also ensure that the transfer does not involve a 'Lead' of Brightstar Care without proper compensation to the company.

Failure to comply with Section 12 could lead to a breach of the franchise agreement, potentially resulting in termination. Therefore, it is crucial for franchisees to carefully review and understand the transfer provisions outlined in Section 12 and seek guidance from Brightstar Care when considering any transfer of ownership or interest in the franchise.