What is the duration of the First Renewal Term for a Brightstar Care franchise, as defined in the agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
with an option to renew for two additional one-year terms for the Agency premises;
- (3) execute a general release in a form satisfactory to us of any and all claims against us, our parent, subsidiaries, and affiliates, and our and their officers, directors, attorneys, owners and employees;
- (4) complete any new training requirements not yet completed;
- (5) Pay us a renewal fee in an amount equal to five thousand dollars ($5,000); and
- (6) at your sole expense and if necessary in our sole opinion, bring the Agency up to our then-current standards for an Agency, including installation or upgrade of computer hardware and software and the ABS.
- (b) If we choose to grant you a first five (5) year renewal franchise term as provided above, you will have the right to acquire a second and third (which will be the final) renewal franchise to continue operating the Franchised Business as a BrightStar Care Agency, the term of each of which will commence immediately upon the expiration of the immediately-preceding renewal franchise term and expire five (5) years from that date, but only if you have complied as of the end of the immediately-preceding renewal franchise term with the same conditions for a renewal franchise grant as those described in this Section 2.2 with respect to the first renewal franchise grant. Otherwise, you will have no right to acquire a second or third (which will be the final), as applicable, renewal franchise term.
Notwithstanding the above, however, the Five-Year Performance Standard you must meet or exceed during the first or second renewal franchise term, as applicable, in order to have the right to a second or third subsequent renewal franchise term, as applicable, will be, respectively, $3,900,000 in Net Billings, and you must maintain or
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, if the franchisor chooses to grant a first renewal franchise term, it will be for five years. A franchisee has the right to acquire a second and third renewal franchise to continue operating their BrightStar Care agency. The term of each of these renewals commences immediately upon the expiration of the preceding renewal franchise term and expires five years from that date.
However, the grant of second and third renewals is conditional. To qualify, the franchisee must have met the conditions for a renewal franchise grant by the end of the immediately preceding renewal franchise term, similar to the requirements for the first renewal. If these conditions are not met, the franchisee will not be entitled to a second or third renewal franchise term.
Furthermore, to have the right to a second or third subsequent renewal franchise term, the franchisee must meet or exceed a Five-Year Performance Standard during the first or second renewal franchise term, respectively, of $3,900,000 in Net Billings. They must also maintain or exceed $15,000 of Net Billings per week during the final year of each of the first and second renewal franchise terms. The franchise agreement for the second or third renewal franchise may include terms and conditions materially different from those in the franchise agreement signed for the immediately preceding renewal franchise, such as different fee structures and/or increased fees. The franchise agreement for the third (and final) renewal franchise will be modified to reflect that no further renewal franchises will be granted.