table_specific

Where in the Brightstar Care franchise agreement can I find information about renewal?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]

    1. The provisions of this Addendum form an integral part of and are incorporated into the Franchise Agreement. This addendum is being signed because: (a) the offer or sale of the franchise to Franchisee was made in the State of Minnesota; (b) Franchisee is a resident of the State of Minnesota; and/or (c) the BrightStar Care Agency will be located or operated in the State of Minnesota.
      1. The following sentence is added to the end of Sections 1.5 and 13:

With respect to franchises governed by Minnesota law, Franchisor will comply with Minnesota Statute § 80C.14, subdivision 3, 4, and 5 which requires, except in certain cases, that Franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement.

[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]

    1. The provisions of this Addendum form an integral part of, and are incorporated into, the Franchise Agreement. This addendum is being signed because: (a) any of the franchise offer or sales activity occurred in California and you are a resident of California; or (b) your BrightStar Care Agency will be located in California.
      1. The following language is added to the Franchise Agreement as new Section 14.3:

Upon our termination of this Agreement in compliance with its terms, your termination of this Agreement without cause in breach of this Agreement, or expiration of this Agreement (if we offer you the right to renew the franchise for the Franchised Business but you choose not to renew), we have the right (but no obligation), exercisable by giving you written notice before or within thirty (30) days after the effective date of termination or expiration, to purchase the Agency's business and related goodwill (other than any goodwill we already own). We have the unrestricted right to assign this purchase option to a third party (including an affiliate), which then will have the rights and obligations described in this Section 14.3. We (or our designee) are entitled to all customary representations, warranties, and indemnities in our purchase, including representations and warranties regarding ownership and condition of, and title to, assets; liens and encumbrances on assets; validity of contracts and liabilities affecting the assets, contingent or otherwise; and indemnities for all actions, events, and conditions that existed or occurred in connection with the Agency before the closing of the purchase. You also agree (at our option) to assign to us (or our designee) the lease for the Agency's premises or to enter into a sublease for the remainder of the lease term on the same terms (including renewal options) as the lease.

[Item 17: Renewal, Termination, Transfer, and Dispute Resolution]

  1. The following language is added to the end of the "Summary" sections of Item 17(c), titled Requirements for franchisee to renew or extend, and Item 17(m), titled Conditions for franchisor approval of transfer:

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–92)

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, Item 17 includes information regarding renewal, termination, transfer, and dispute resolution. Specifically, for franchisees in Minnesota, the document states that Brightstar Care will comply with Minnesota Statute § 80C.14, subdivisions 3, 4, and 5, which mandates that, except in certain cases, franchisees must receive 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement.

For Brightstar Care agencies located in California, the FDD states that upon termination of the agreement, or expiration of the agreement (if Brightstar Care offers the right to renew the franchise but the franchisee chooses not to renew), Brightstar Care has the right to purchase the agency's business and related goodwill. This right is exercisable by giving written notice before or within thirty (30) days after the effective date of termination or expiration.

Additionally, for Maryland franchisees, the document states that additional language is added to the end of the "Summary" sections of Item 17(c), titled Requirements for franchisee to renew or extend. This indicates that specific requirements for renewal or extension are detailed within that section of Item 17. Therefore, prospective franchisees should carefully review Item 17 and any associated addenda relevant to their state to understand the specific terms and conditions for renewal, termination, transfer, and dispute resolution.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.