In the Brightstar Care franchise agreement, does the definition of 'you' in Article 11 apply collectively or individually to owners, guarantors, officers, directors, members, managers, partners, and holders of ownership interest?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise specified, the term "you" as used in this Article 11 will include, collectively and individually, all owners, guarantors, officers, directors, members, managers, partners, as the case may be, and holders of any ownership interest in you.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the term 'you' in Article 11 of the franchise agreement applies both collectively and individually. This definition encompasses all owners, guarantors, officers, directors, members, managers, partners, and holders of any ownership interest in the franchisee. This means that the covenants within Article 11, particularly those related to non-competition and confidentiality, apply to all of these individuals and the franchisee entity as a whole.
This broad definition has significant implications for anyone involved in the Brightstar Care franchise. Each individual listed in the definition is bound by the terms of Article 11, meaning they are all responsible for upholding the non-compete and confidentiality clauses. For example, a director or officer could be held personally liable for breaching the confidentiality agreement, even if they are not a direct owner of the franchise.
This is a fairly standard practice in franchising, as franchisors aim to protect their confidential information and prevent unfair competition from anyone associated with the franchise. Prospective Brightstar Care franchisees should carefully review Article 11 and understand the obligations it places on all individuals involved in the franchise ownership and management structure. It is important to ensure that all parties understand and agree to these terms before entering into the franchise agreement.