For Brightstar Care franchises, is a franchisee permitted to own the site from which they plan to operate the Agency?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Leases
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 is not permitted to own the site from which they operate their agency. The FDD stipulates that franchisees must lease the site from a third party, regardless of whether that third party is affiliated with them or not.
Specifically, if a franchisee's affiliate owns the real estate where the Brightstar Care agency will operate, the franchisee must execute a separate lease agreement with that affiliate. This ensures that the franchisee's possession and occupancy of the premises are governed by a formal lease agreement, maintaining a clear separation between ownership and operation.
This policy is in place to give Brightstar Care more control over the location of its franchises. Additionally, if the franchisee is leasing the Agency's Premises, the franchisee 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 Brightstar Care the option to assume the lease if the Franchise Agreement expires or terminates for any reason.