What form of agreement must a Brightstar Care franchisee sign as a condition of renewal?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You have no right to acquire a second or third renewal franchise if these conditions are not satisfied. The then-current form of franchise agreement that you will sign for the second or third renewal franchise may include terms and conditions materially different from those in the franchise agreement you sign 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.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, to renew their franchise agreement, a franchisee must sign the then-current form of franchise agreement. This agreement may include terms and conditions that are materially different from the franchise agreement signed for the immediately preceding renewal franchise, potentially involving different fee structures and/or increased fees.
Brightstar Care offers the possibility of a first five-year renewal franchise term. Following this first renewal, franchisees have the option to acquire a second and a third renewal franchise, each also for a five-year term. However, this is only possible if the franchisee has met all the conditions for renewal by the end of the preceding term, mirroring the requirements for the initial renewal. If these conditions are not met, the franchisee forfeits the right to further renewals.
It is important to note that the franchise agreement for the third and final renewal will be modified to explicitly state that no further renewals will be granted beyond that term. This ensures clarity and finality regarding the duration of the franchise agreement. Prospective franchisees should be aware that the terms can change upon renewal and should carefully review the then-current franchise agreement to understand any new obligations or financial implications.