Is a Brightstar Care franchisee permitted to operate the Agency Premises from a person's home?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You must secure real estate for the operation of the Franchised Business. Within one hundred fifty (150) days after this Agreement's Effective Date, you must secure a Premises for the Agency that is acceptable to us. You must use the Premises solely to operate the Agency in the manner and pursuant to the standards prescribed in this Agreement, the Operations Manual, or otherwise in writing and must refrain from using or permitting use of the Premises for any other purpose or activity at any time. The Agency Premises may not be located in a person's home. You must give us a copy of the proposed lease, which we must approve prior to execution, and which must give us:
6.1.1 The right to enter the Premises to make any modification necessary to protect the Licensed Marks and a "Collateral Assignment of Lease" in the form attached hereto as Exhibit C, executed by you and the lessor of the Premises, giving us notice of your default under the lease, a right to cure such default, and the right to assume the lease (including our right to assume the lease upon expiration or termination of this Agreement), as well as the further right to sublease or assign to a BrightStar Care Agency franchisee (and if we exercise our rights under the Collateral Assignment of Lease, we will have the option to acquire all fixtures, equipment, and other leasehold improvements on the Premises at fair market value).
6.1.2 The terms of an office building lease, including any option for renewal, must be a minimum of one (1) year with the option to renew for two additional one (1) year terms for a total of three years.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from operating the Agency Premises from a person's home. The FDD states that within 150 days of the agreement's effective date, the franchisee must secure a premises acceptable to Brightstar Care for operating the franchised business. This premises must be used solely for the Brightstar Care agency and in accordance with the standards outlined in the agreement and operations manual.
Brightstar Care requires approval of the proposed lease before it is executed. The lease must grant Brightstar Care the right to enter the premises for modifications to protect the licensed marks. It must also include a 'Collateral Assignment of Lease' that allows Brightstar Care to be notified of any default under the lease, gives them the right to cure the default, and allows them to assume the lease, including upon expiration or termination of the agreement. Brightstar Care also has the right to sublease or assign the lease to another Brightstar Care franchisee and to acquire fixtures and equipment at fair market value if they exercise their rights under the Collateral Assignment of Lease.
The terms of the office building lease must be a minimum of one year, with the option to renew for two additional one-year terms, totaling three years. This requirement ensures a stable location for the Brightstar Care agency and protects Brightstar Care's interests in maintaining consistent brand representation and operational standards. These stipulations ensure that Brightstar Care maintains control over the location and operation of its franchises, safeguarding its brand and system standards.