Must a Brightstar Care franchisee obtain written approval before signing the proposed lease for their site?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Assignor agrees it will not allow or permit any surrender, termination, amendment or modification of the Lease without the prior written consent of Assignee. Through the term of the Franchise Agreement and any renewals thereto, Assignor agrees that it may elect and exercise all options to extend the term of or renew the Lease not less than thirty (30) days prior to the last day that such option must be exercised, unless Assignee otherwise agrees in writing. Upon failure of Assignee to otherwise agree in writing, and upon failure of Assignor to so elect to extend or renew the Lease as stated herein, Assignor hereby appoints Assignee as its true and lawful attorney-in-fact to exercise such extension or renewal options in the name, place and stead of Assignor for the sole purpose of effecting such extension of renewal.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
The 2025 Brightstar Care Franchise Disclosure Document (FDD) addresses lease-related requirements within the context of assigning a lease from an assignor to an assignee, particularly concerning the franchisor's rights and controls. According to the FDD, if a Brightstar Care franchisee (the Assignor) defaults under the lease or the franchise agreement, Brightstar Care (the Assignee) has the right to take possession of the premises, expelling the franchisee. In such an event, the franchisee loses any rights to the lease.
Furthermore, the FDD stipulates that the franchisee (Assignor) cannot surrender, terminate, amend, or modify the lease without obtaining prior written consent from Brightstar Care (Assignee). This provision ensures that Brightstar Care maintains control over the lease terms and conditions, preventing franchisees from making unilateral changes that could negatively impact the franchise operations or the franchisor's interests. This requirement is in place throughout the term of the Franchise Agreement and any renewals.
Additionally, the FDD states that the franchisee must elect and exercise all options to extend or renew the lease at least thirty days before the option's deadline, unless Brightstar Care agrees otherwise in writing. If the franchisee fails to do so, Brightstar Care is appointed as the attorney-in-fact to exercise such extension or renewal options on behalf of the franchisee. This ensures the continuity of the lease and the operation of the Brightstar Care agency. While the document does not explicitly state that a franchisee needs written approval before signing an initial lease, it heavily implies that Brightstar Care maintains significant control over lease modifications, renewals, and terminations, suggesting a need for franchisor involvement in lease-related decisions.