If I decide to sell my Brightstar Care franchise, what kind of offer must I obtain from a buyer?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
12.4.16 You or the transferee must provide us for review and approval a copy of the executed purchase agreement relating to the proposed Transfer with all supporting documents and schedules, including transferee's assumption of and agreement to faithfully perform all of your obligations under this Agreement.
12.4.17 You must ask us to provide the prospective transferee with our thencurrent form of disclosure document.
12.4.18 Our approval of the Transfer will not constitute a waiver of any claims we have against the transferring party.
12.4.19 Notwithstanding anything above, you expressly acknowledge the reasonableness of the following Transfer condition: If you and/or your affiliates (a) own and operate, either when you request approval of a proposed Transfer or as of the proposed Transfer's effective date, more than one BrightStar Care Agency under one or more additional franchise agreements with us, regardless of when such franchise agreements were signed, and (b) desire to Transfer this Agreement and/or the Agency, together with one or more of your and/or your affiliates' other franchise agreements and/or BrightStar Care Agencies, at the same time and to the same proposed transferee and/or its affiliates as part of the same transaction or in a series of substantially contemporaneous transactions, we have no obligation to allow the Transfers of the multiple BrightStar Care Agencies and instead have the absolute right to limit the proposed Transfer solely to this Agreement and/or the Agency without regard to the proposed terms of the Transfer or Transfers negotiated between you and/or your affiliates and the proposed transferee and/or its affiliates.
We reserve this right in order to preserve and enhance compliant operations of BrightStar Care Agencies and to protect the System's reputation and goodwill.
You further acknowledge that the rights described in this paragraph will apply even if the proposed Transfer is of a controlling ownership interest in you (as defined in Section 12.7 below) in situations where you own multiple BrightStar Care Agencies under one or more franchise agreements with us.
In other words, we may disapprove the Transfer of a controlling ownership interest in you if the Transfer would result in new owners of yours effectively controlling the Agency and additional BrightStar Care Agencies under separate franchise agreements with us.
- 12.4.20 In addition to the above, you acknowledge that we have legitimate reasons to evaluate the qualifications of potential transferees and to analyze and critique the terms of their purchase contracts with you, and our contact with potential transferees to protect our business interests will not constitute improper or unlawful conduct.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, if you decide to sell your franchise, you or the transferee must provide Brightstar Care with a copy of the executed purchase agreement for review and approval. This agreement should include all supporting documents and schedules, and it must demonstrate the transferee's commitment to assume and fulfill all of your obligations under the existing franchise agreement.
Brightstar Care emphasizes its right to evaluate potential transferees and analyze the terms of their purchase contracts. Their engagement with potential transferees is intended to protect the company's business interests and will not be considered improper or unlawful conduct. This evaluation process underscores Brightstar Care's interest in maintaining the quality and compliance of its franchise operations.
Furthermore, the FDD stipulates that the prospective buyer must meet several conditions to be approved as a Brightstar Care franchisee. The buyer must complete the required training, obtain all necessary licenses and registrations to fully operate the Brightstar Care business, and execute Brightstar Care's current form of franchise agreement, which may have substantially different terms and conditions than your original agreement. The buyer must also execute the then-current Assignment and Consent Agreement, and Co-Territory Agreement, if applicable.