What is the duration of the second and third (final) renewal franchise term for a Brightstar Care agency?
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, franchisees who are granted a first renewal franchise term have the right to acquire a second and third renewal franchise. The term for both the second and third renewal will commence immediately after the expiration of the preceding renewal franchise term. Each renewal term will then expire five years from that commencement date. Therefore, the duration of both the second and third renewal franchise terms is five years each.
However, this right to acquire a second and third renewal franchise is contingent upon the franchisee meeting the same conditions for renewal as those required for the first renewal franchise grant. If these conditions are not met by the end of the immediately preceding renewal franchise term, the franchisee will not be entitled to a second or third renewal franchise term.
Furthermore, to qualify for a second or third renewal franchise term, Brightstar Care specifies a Five-Year Performance Standard. During the first or second renewal franchise term, the franchisee must achieve $3,900,000 in Net Billings. Additionally, the franchisee must maintain or exceed $15,000 of Net Billings per week during the final year of both the first and second renewal franchise terms. The franchise agreement for the second or third renewal franchise may also include terms and conditions that are materially different from the previous agreement, potentially involving different fee structures or increased fees. The agreement for the third and final renewal will explicitly state that no further renewals will be granted.