What happens if a Brightstar Care franchisee chooses not to renew the franchise?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The following language is added to the Franchise Agreement as new Section 14.3:
Upon our termination of this Agreement in compliance with its terms, your termination of this Agreement without cause in breach of this Agreement, or expiration of this Agreement (if we offer you the right to renew the franchise for the Franchised Business but you choose not to renew), we have the right (but no obligation), exercisable by giving you written notice before or within thirty (30) days after the effective date of termination or expiration, to purchase the Agency's business and related goodwill (other than any goodwill we already own). We have the unrestricted right to assign this purchase option to a third party (including an affiliate), which then will have the rights and obligations described in this Section 14.3. We (or our designee) are entitled to all customary representations, warranties, and indemnities in our purchase, including representations and warranties regarding ownership and condition of, and title to, assets; liens and encumbrances on assets; validity of contracts and liabilities affecting the assets, contingent or otherwise; and indemnities for all actions, events, and conditions that existed or occurred in connection with the Agency before the closing of the purchase. You also agree (at our option) to assign to us (or our designee) the lease for the Agency's premises or to enter into a sublease for the remainder of the lease term on the same terms (including renewal options) as the lease.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–92)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, if a franchisee in California chooses not to renew their franchise after Brightstar Care offers them the option to renew, Brightstar Care has the option to purchase the Agency's business and related goodwill. This right is exercisable by giving written notice before or within thirty (30) days after the effective date of termination or expiration. Brightstar Care can also assign this purchase option to a third party.
If Brightstar Care or their designee chooses to purchase the business, they are entitled to customary representations, warranties, and indemnities in the purchase. This includes warranties regarding ownership, condition, and title to assets; liens and encumbrances on assets; validity of contracts and liabilities; and indemnities for actions, events, and conditions that occurred before the purchase.
Additionally, Brightstar Care has the option to have the franchisee assign the agency's premises lease to them or their designee, or enter into a sublease for the remainder of the lease term under the same terms, including renewal options. This ensures Brightstar Care can continue operating the business from the same location if they choose.