Can a Brightstar Care franchisee own the site from which they plan to operate the Agency?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are leasing the Agency's Premises, you and the landlord must sign the Collateral Assignment of Lease, or a comparable document, a copy of which is attached to the Franchise Agreement as Exhibit "C." This document gives us the option to assume your lease if the Franchise Agreement expires or terminates for any reason.
If your affiliate intends to purchase real estate as the Premises where the Agency will operate, you and your affiliate must adhere to the same requirements and review process as outlined in the Franchise Agreement and Operations Manual. You may not own the site from which you plan to operate the Agency. You must lease the site from a third party, whether or not affiliated with you. If your affiliate owns the site, you must execute a separate lease with that affiliate governing the terms of your possession and occupancy of the premises.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 41–44)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee cannot own the site from which they operate their agency. The FDD stipulates that the franchisee must lease the site from a third party, regardless of whether that third party is affiliated with the franchisee. If an affiliate of the franchisee owns the real estate, the franchisee is required to execute a separate lease agreement with that affiliate to govern the terms of possession and occupancy.
This requirement ensures that Brightstar Care can maintain control over the agency's location. The franchisor requires that if the franchisee's agreement expires or terminates for any reason, Brightstar Care has the option to assume the lease. This is facilitated through a Collateral Assignment of Lease, which must be signed by both the franchisee and the landlord.
This policy is in place to protect Brightstar Care's interests and ensure business continuity. By preventing franchisees from owning their locations outright, Brightstar Care mitigates the risk of losing a location due to franchisee disputes or financial issues. This arrangement allows Brightstar Care to maintain consistent brand presence and operational control across its franchise network.
Prospective franchisees should carefully consider this requirement and factor in the costs and terms associated with leasing a suitable location for their Brightstar Care agency. Understanding the implications of the Collateral Assignment of Lease is also crucial, as it directly affects the franchisee's rights and obligations regarding the agency's premises.