What is the deadline for payment of fees owed to Brightstar Care after the Execution Date?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| GMF expense | was | $12,493,237 | and | $12,572,362 | for the | years ended |
2. Grant of Expansion Option
Subject to the terms and conditions of this Agreement and the Franchise Agreement, BrightStar grants to you, and you accept, an option to acquire from BrightStar the right to open and operate an additional BrightStar Care Agency in the Expansion Territory. In consideration of your payment of the Expansion Option Fee (defined below), BrightStar agrees that it will not offer or sell the right to open and operate a BrightStar Care Agency in the Expansion Territory to any third party during the Option Period (defined below) of this Agreement.
3. Expansion Option Fee
In consideration for BrightStar granting the expansion option under this Agreement, you agree to pay BrightStar a fee equal to Ten Thousand Dollars ($10,000) (the "Expansion Option Fee"). This sum will be due in full when you sign this Agreement and will be considered fully earned by BrightStar when paid, in consideration of BrightStar granting you the expansion option. The Expansion Option Fee is not refundable in whole or in part under any circumstance, including if the expansion option granted to you under this Agreement lapses. However, if you exercise your option and ent
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the deadline for paying the Expansion Option Fee is when you sign the agreement. Specifically, to obtain the option to open an additional Brightstar Care Agency in an Expansion Territory, the franchisee must pay Brightstar Care a $10,000 Expansion Option Fee.
Brightstar Care considers this fee fully earned upon payment, as it is the consideration for granting the franchisee the expansion option. This fee is non-refundable, regardless of whether the franchisee ultimately exercises the expansion option or if the option lapses.
However, if the franchisee does exercise the expansion option and enters into a franchise agreement for the Expansion Territory, Brightstar Care will credit the $10,000 Expansion Option Fee toward the Initial Franchise Fee due under the new franchise agreement. If the franchisee does not execute a franchise agreement for the Expansion Territory within the Option Period, the expansion option lapses, and the franchisee forfeits the Expansion Option Fee.