What happens if a Brightstar Care franchisee attempts to assign the Expansion Option Agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ttached to this disclosure document.
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| with your ownership, management, operation, maintenance of, engagement in, consulting with, or having any interest in any Competing Business. | ||
| s. Modification of agreement | 9 and 20.3 10 of Standard Renewal Addendum 12 of Expansion Option Agreement | The Franchise Agreement (and Expansion Option Agreement) may not be modified except by a written agreement that you and we sign. We can modify or change the BrightStar Care Agency Program through changes in the Operations Manual and you are bound by the same. |
| t. Integration/ merger clause | 24 12 of Expansion Option Agreement | Only the terms of the Franchise Agreement and other related written agreements (including the Expansion Option Agreement) are binding (subject to state law). Any representations or promises outside of the Franchise Agreement or this Disclosure Document may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | 15 14 of Expansion Option Agreement | Except for certain claims, all disputes must first be submitted to our senior executives for internal dispute resolution and, if not resolved, to a mediation hearing conducted according to the procedure stated in the Franchise Agreement. Mediation will be held at our offices. Disputes that cannot be resolved through mediationare resolved through arbitration. |
| v. Choice of forum | 15.7 14 of Expansion Option Agreement | All arbitration is to take place at a suitable location that is within 10 miles of where we have our principal business address when the arbitration demand is filed (currently Bannockburn, Illinois) (subject to state law). All litigation must be filed in the county and state where our headquarters is located at the time the action is filed (currently Lake County, Illinois) (subject to state law). |
| w. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–92)
What This Means (2025 FDD)
Based on the 2025 Brightstar Care Franchise Disclosure Document, the Expansion Option Agreement cannot be modified except through a written agreement signed by both the franchisee and Brightstar Care. The terms of the Expansion Option Agreement are binding, and any representations or promises made outside of the Franchise Agreement or the Disclosure Document may not be enforceable. This means a franchisee cannot unilaterally assign or transfer the Expansion Option Agreement without the express written consent of Brightstar Care.
This provision protects Brightstar Care by ensuring they maintain control over who can expand within their franchise system. It prevents franchisees from potentially selling or transferring expansion rights to unqualified or unsuitable parties, which could negatively impact the brand and the quality of services provided. For a prospective franchisee, this highlights the importance of carefully considering the terms of the Expansion Option Agreement and understanding that they cannot transfer this agreement without Brightstar Care's approval.
In the event of disputes related to the Expansion Option Agreement, the FDD states that disputes must first be submitted to Brightstar Care's senior executives for internal dispute resolution. If unresolved, the dispute proceeds to mediation held at Brightstar Care's offices. Any disputes that cannot be resolved through mediation will be resolved through arbitration. All arbitration is to take place at a suitable location that is within 10 miles of where Brightstar Care has its principal business address when the arbitration demand is filed (currently Bannockburn, Illinois) (subject to state law). All litigation must be filed in the county and state where Brightstar Care's headquarters is located at the time the action is filed (currently Lake County, Illinois) (subject to state law). Illinois law applies (subject to state law).
This dispute resolution process means that franchisees may need to travel to Illinois for mediation or arbitration, which could incur significant costs. The application of Illinois law could also mean that franchisees need to engage legal counsel familiar with Illinois law. Prospective franchisees should consider these factors when evaluating the potential costs and risks associated with the Brightstar Care franchise opportunity.