Must a Brightstar Care franchisee execute a general release of claims as a condition of renewal?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Assignor and Assignee acknowledge that Franchisor's willingness to allow them to sell and acquire, respectively, the Franchised Business is conditioned on Assignee's agreement to comply fully with all operating and other requirements stated in the New Franchise Agreement and Franchisor's Operations Manual and, if the Franchised Business Agency was not in compliance with such requirements as of the Execution Date, to cure that non-compliance within a specified number of days following the Execution Date. Therefore, Assignee agrees to take all action necessary to ensure that the Franchised Business is in full compliance, specifically, with Franchisor's BrightStar Care Agency office requirements, key personnel hiring and full training requirements, and ABS conversion and usage requirements on or before [date]. Assignee's failure to comply fully with these three principal requirements on or before [date] will be deemed to be a default under the New Franchise Agreement.
14. Release and Settlement of Claims.
- A. Assignor and each of their respective heirs, successors, assigns, affiliates, shareholders, directors, employees, and agents, and on behalf of any other party claiming an interest through them (collectively and individually referred to as the "Assignor Parties" for purposes of Sections 14, 15 and 16 below), release and forever discharge us, our predecessors, successors, affiliates, directors, officers, shareholders, agents, employees and assigns (collectively and individually referred to as the "Franchisor Parties" for purposes of Sections 14, 15 and 16) and BrightStar Care Franchisees (Franchisor Parties and BrightStar Care Franchisees are collectively referred to as "BrightStar Parties" for purposes of Section 14, 15, and 16) of and from any and all claims, debts, liabilities, demands, obligations, costs, expenses, actions and causes of action, whether known or unknown, vested or contingent, which Assignor Parties may now or in the future own or hold, that in any way relate to the Old Franchise Agreement, any other agreement between Assignor and Franchisor or the BrightStar Parties, the Franchised Business, or the relationship between Assignor and Franchisor or the BrightStar Parties through the Hard Closing Date (collectively, "Claims"), for known or unknown damages or other losses including, but not limited to, any alleged violations of any deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state, federal, or other laws, statutes, rules or regulations, and any alleged violations of the Old Franchise Agreement or any other agreement between Assignor and Franchisor or the BrightStar Parties through and including the Execution Date.
- B. Except as noted herein, the Franchisor Parties hereby release the Assignor Parties from any Claims subject to Assignor's compliance with the terms and conditions of this Agreement (the "Franchisor Claims" for purposes of this Section 14 and 15).
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
The 2025 Brightstar Care Franchise Disclosure Document (FDD) indicates that a franchisee may be required to execute a release of claims under certain circumstances, specifically when selling their franchise business.
According to Item 23, as a condition of Brightstar Care's consent to the assignment of a franchise, both the assignor (seller) and assignee (buyer) must acknowledge that the franchisor's willingness to allow the sale and acquisition is dependent on the assignee's agreement to comply with all operational requirements in the new franchise agreement and the Operations Manual. If the agency is not compliant as of the execution date, the assignee must rectify this within a specified timeframe.
Furthermore, the assignor is required to release Brightstar Care from any and all claims related to the old franchise agreement, any other agreements, the franchised business, or the relationship between the assignor and Brightstar Care up to the hard closing date. This release covers all known or unknown claims, including alleged violations of deceptive trade practices, franchise laws, or any other laws or regulations. The franchisor, in turn, releases the assignor from any claims, subject to the assignor's compliance with the terms and conditions of the agreement.
While the FDD details the release of claims required during the sale of a franchise, it does not explicitly state that a general release of claims is required as a standard condition for franchise renewal. However, the document does state that the renewal franchise agreement may include terms and conditions materially different from those in the original franchise agreement. A prospective franchisee should clarify with Brightstar Care whether a release of claims is a standard requirement for renewal.