What is the definition of a 'sub-franchisee' in the context of the Brightstar Care Microsoft agreement?

According to Brightstar Care's 2025 Franchise Disclosure Document, a 'sub-franchisee' within the context of the Microsoft agreement is defined as an entity that enters into an agreement with a master franchisee. Through this agreement, the sub-franchisee is granted franchise or related rights to a franchise system or concept offered by Brightstar Care or its affiliates. This franchise system or concept must include the use of a trade name containing "BrightStar" or "Bright Star."

This definition clarifies the relationship between Brightstar Care, master franchisees, and sub-franchisees in the context of rights and obligations related to the Brightstar Care brand and franchise system. It specifies that the franchise system must involve the use of the Brightstar Care trade name. This is important because it ensures that all parties involved are operating under the same brand identity and standards.

The definition also includes a condition for when an entity ceases to be a sub-franchisee. Specifically, a person or entity will no longer be considered a sub-franchisee once substantially all of its material franchise rights under the agreement expire or terminate. This provision ensures that the sub-franchisee status is tied to the active exercise of franchise rights and not merely the existence of a past agreement.