In the Brightstar Care franchise agreement, what representation and warranty is made by the franchisee and each owner regarding ownership interest?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
he State of conducted business under any name other than your limited liability company name. The following You and each of your owners represent and warrant that the following is a complete and accurate list of all your direct and indirect owners, including the full name and mailing address of each direct and indirect owner, and fully describes the nature and extent of each owner's interest in you. (By "indirect" owners, we mean that, if any or your direct owners is a legal entity, you also must completely and accurately list and provide the same information for all of the owners of that entity. In other words, you must identify the complete ownership structure all the way up the ownership chain, until you identify the individual people who are investing in your entities.) You and each owner—as to his, her, or its ownership interest—represent and warrant that each owner is the sole
Submitted by you on , a corporation/limited liability Franchisee Print Name: Print Name: Owners: (Signature) (Signature) Print Name: Print Name: (Signature) (Signature) Print Name: Print Name: Agreement as of Accepted by BrightStar Franchising, LLC, and made a part of the Agency Franchise BRIGHTSTAR FRANCHISING, LLC
Source: Item 20 — OUTLETS AND FRANCHISE INFORMATION (FDD pages 107–117)
What This Means (2025 FDD)
According to the 2025 Brightstar Care Franchise Disclosure Document, the franchisee and each owner must represent and warrant that each owner is the sole and exclusive legal and beneficial owner of their ownership interest in the franchisee entity. This ownership must be free and clear of all liens, restrictions, agreements, and encumbrances, except as required or permitted by the Franchise Agreement.
This representation is significant because Brightstar Care wants to ensure that the franchisee's ownership is straightforward and unencumbered. Any hidden claims or disputes over ownership could complicate the franchise relationship and potentially harm the Brightstar Care brand. The requirement to disclose all direct and indirect owners, including those up the ownership chain, ensures transparency and allows Brightstar Care to assess the full ownership structure.
Failure to provide a complete and accurate list of all direct and indirect owners constitutes a default under the Franchise Agreement. This underscores the importance Brightstar Care places on accurate ownership information. Prospective franchisees should carefully document and disclose all ownership interests to avoid any potential issues or breaches of the agreement. This level of scrutiny is fairly standard in franchising, as franchisors need to protect their brand and ensure the stability of their franchisees' businesses.