Is a Brightstar Care franchisee allowed to assign the Expansion Option Agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ttached to this disclosure document.
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| with your ownership, management, operation, maintenance of, engagement in, consulting with, or having any interest in any Competing Business. | ||
| s. Modification of agreement | 9 and 20.3 10 of Standard Renewal Addendum 12 of Expansion Option Agreement | The Franchise Agreement (and Expansion Option Agreement) may not be modified except by a written agreement that you and we sign. We can modify or change the BrightStar Care Agency Program through changes in the Operations Manual and you are bound by the same. |
| t. Integration/ merger clause | 24 12 of Expansion Option Agreement | Only the terms of the Franchise Agreement and other related written agreements (including the Expansion Option Agreement) are binding (subject to state law). Any representations or promises outside of the Franchise Agreement or this Disclosure Document may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | 15 14 of Expansion Option Agreement | Except for certain claims, all disputes must first be submitted to our senior executives for internal dispute resolution and, if not resolved, to a mediation hearing conducted according to the procedure stated in the Franchise Agreement. Mediation will be held at our offices. Disputes that cannot be resolved through mediationare resolved through arbitration. |
| v. Choice of forum | 15.7 14 of Expansion Option Agreement | All arbitration is to take place at a suitable location that is within 10 miles of where we have our principal business address when the arbitration demand is filed (currently Bannockburn, Illinois) (subject to state law). All litigation must be filed in the county and state where our headquarters is located at the time the action is filed (currently Lake County, Illinois) (subject to state law). |
| w. Choice of law | 22 14 of Expansion Option Agreement | Illinois law applies (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–92)
What This Means (2025 FDD)
According to the 2025 Brightstar Care Franchise Disclosure Document, the Expansion Option Agreement may not be modified except by a written agreement signed by both the franchisee and Brightstar Care.
Regarding the termination of the Franchise Agreement, Brightstar Care retains the right to purchase the agency's business and related goodwill. Brightstar Care also has the unrestricted right to assign this purchase option to a third party, including an affiliate, who will then assume the rights and obligations outlined in Section 14.3 of the agreement.
In New York, Brightstar Care will not assign its rights under the Franchise Agreement except to an assignee who in Brightstar Care's good faith and judgment is willing and able to assume Brightstar Care's obligations under the Franchise Agreement. In Minnesota, franchisees will not be required to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statute §§ 80C.01 – 80C.22.