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For a Brightstar Care franchise, can an owner be an entity rather than an individual, and if so, under what condition?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

You represent that as of the execution of this Agreement your equity and voting control is owned as shown in Exhibit D. If you or any approved successor is a partnership, limited liability company, or privately-held corporation, you will submit to Franchisor prior to any proposed Transfer of an equity or voting interest, and at any other time upon request, a list of all owners reflecting their respective present and/or proposed direct or indirect interests in you in such form as we may require.

Source: Item 22 — CONTRACTS (FDD pages 117–118)

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, a franchise can be owned by a partnership, limited liability company, or privately-held corporation. However, Brightstar Care requires that if the franchisee or any approved successor is one of these entity types, they must submit a list of all owners reflecting their direct or indirect interests in the company. This list must be provided to Brightstar Care before any proposed transfer of equity or voting interest, or at any other time upon request, in a format that Brightstar Care requires.

This condition allows Brightstar Care to maintain transparency regarding the ownership and control of its franchises, even when the franchisee is not an individual. By requiring a detailed list of owners and their interests, Brightstar Care can assess the qualifications and suitability of those who ultimately control the franchise. This is in line with the company's right to evaluate the qualifications of potential transferees, as mentioned in the FDD.

For a prospective Brightstar Care franchisee, this means that if you plan to operate your franchise through a business entity, you must be prepared to disclose detailed information about the ownership structure and the individuals or entities holding equity or voting interests. This requirement ensures that Brightstar Care can properly vet and approve all parties involved in the franchise ownership, regardless of whether they are direct franchisees or indirect owners through a business entity.

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.