What happens if the Brightstar Care transferee and its affiliates are not in substantial operational compliance under other franchise agreements?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.4.1 (a) The transferee and its owners must demonstrate to our sole satisfaction that they meet all of our requirements for becoming a franchisee, including, without limitation, our financial, entrepreneurial, and managerial and business standards then in effect for similarlysituated franchisees, possess a good moral character, business reputation, and satisfactory credit rating, will comply with our instruction and training requirements, and have the aptitude and ability to operate the Agency (as may be evidenced by prior related business experience or otherwise, including, without limitation, that the transferee and its affiliates are in substantial operational compliance, at the time of the application, under all other franchise agreements for BrightStar Care Agencies to which they then are parties with us), (b) the transferee is aware of the incremental costs that must be invested to bring any and all agencies into compliance with our then-existing requirements for office locations, personnel, advertising and recruiting spend, and other items and has satisfactorily considered those costs in its investment plan and purchase price and (c) the transferee and/or its owners are not a private equity firm or a Search Fund.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the company emphasizes the importance of a transferee's qualifications. Brightstar Care will assess whether the transferee and its affiliates are in substantial operational compliance with any existing Brightstar Care franchise agreements they may have.
Specifically, Brightstar Care must be satisfied that the transferee meets all the requirements for becoming a franchisee. This includes adhering to the company's financial, entrepreneurial, managerial, and business standards. The transferee must also have a good moral character, business reputation, and a satisfactory credit rating. They must also comply with Brightstar Care's instruction and training requirements and have the aptitude and ability to operate the agency. Evidence of this ability can include the transferee and its affiliates being in substantial operational compliance with other Brightstar Care franchise agreements.
If the transferee and its affiliates are not in substantial operational compliance under other Brightstar Care franchise agreements, Brightstar Care may not approve the transfer. Brightstar Care also wants to ensure that the transferee is aware of the costs required to bring all agencies into compliance with the company's requirements for office locations, personnel, advertising and recruiting spend, and other items, and has satisfactorily considered those costs in its investment plan and purchase price. Brightstar Care also stipulates that the transferee and/or its owners are not a private equity firm or a Search Fund.