factual

If a Brightstar Care agency is acquired through a transfer, how is the Minimum Start Date determined?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

If you acquired the Agency as a result of a transfer, the Minimum Start Date will be the effective date of the transfer (and the applicable Monthly Performance Standards will be reflected in a Standard Resale Addendum to Franchise Agreement (Exhibit O) and will depend on your selling franchisee's actual performance before the transfer's effective date).

Source: Item 6 — OTHER FEES (FDD pages 17–34)

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, if a franchisee acquires an existing Brightstar Care agency through a transfer, the Minimum Start Date (MSD) is defined as the effective date of the transfer. This date is significant because it marks the beginning of the period used to evaluate the franchisee's performance against the Monthly Performance Standards.

The Monthly Performance Standards applicable to the new franchisee will be detailed in a Standard Resale Addendum to the Franchise Agreement, which is included as Exhibit O. These standards are not fixed; instead, they are influenced by the previous franchisee's performance before the transfer. This means that a prospective franchisee's performance expectations are tied to the historical performance of the agency they are acquiring.

For a prospective Brightstar Care franchisee, this means that the financial performance of the franchise they are buying into will directly impact their initial performance targets. If the agency was previously successful, the new franchisee will be expected to meet higher standards from the outset. Conversely, if the agency struggled, the initial performance standards may be set lower, giving the new franchisee more time to improve the business. It is important to carefully review the Standard Resale Addendum to fully understand the performance expectations associated with the transfer.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.