What form of franchise agreement must a Brightstar Care franchisee sign as a condition of renewal?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
had, or chose to exercise, the right to terminate this Agreement during the Initial Term and regardless of your having satisfied the other renewal conditions specified in this Section 2.2.
As a condition of any renewal, you must:
- (1) sign our then-current form of franchise agreement for renewal franchises, which may include terms and conditions materially different from those in this Agreement, such as different performance standards, fee structures and/or increased fees;
- (2) if available, execute a new lease for a minimum of one year 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 above in this Se
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, as a condition of renewal, a franchisee must sign the then-current form of franchise agreement for renewal franchises. This new agreement may contain terms and conditions that are significantly different from the original agreement. These differences can include variations in performance standards, fee structures, and increased fees.
In addition to signing the new franchise agreement, the franchisee must also meet other conditions to renew their Brightstar Care franchise. If available, they need to execute a new lease for the Agency premises for a minimum of one year, with an option to renew for two additional one-year terms. They must also execute a general release of claims against Brightstar Care and related parties, complete any new training requirements, and pay a renewal fee of $5,000. Furthermore, the franchisee may need to bring the Agency up to Brightstar Care's then-current standards, which could involve upgrades to computer hardware and software, at their own expense.
Brightstar Care offers the possibility of a first five-year renewal franchise term, with the option to acquire a second and third renewal franchise. Each subsequent term commences immediately after the expiration of the preceding term and lasts for five years. However, the franchisee must continue to meet all the renewal conditions described above to be eligible for each additional renewal term. This ensures that all Brightstar Care franchisees adhere to the current standards and practices of the franchise system.