What is the length of each renewal term for a Brightstar Care franchise?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) If we choose to grant you a first five (5) year renewal franchise term as provided above, you will have the right to acquire a second and third (which will be the final) renewal franchise to continue operating the Franchised Business as a BrightStar Care Agency, the term of each of which will commence immediately upon the expiration of the immediately-preceding renewal franchise term and expire five (5) years from that date, but only if you have complied as of the end of the immediately-preceding renewal franchise term with the same conditions for a renewal franchise grant as those described above in this Section 2.2 with respect to the first renewal franchise grant. Otherwise, you will have no right to acquire a second or third (which will be the final), as applicable, renewal franchise term.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to the 2025 Brightstar Care Franchise Disclosure Document, if Brightstar Care chooses to grant a franchisee a first renewal franchise term, the franchisee has the right to acquire a second and third renewal franchise. The term for each of these renewals is five years, commencing immediately after the expiration of the preceding renewal term. The third renewal is the final renewal term offered.
To be eligible for these subsequent renewal terms, the franchisee must meet the same conditions required for the initial renewal franchise grant. These conditions typically include signing the then-current franchise agreement, which may have materially different terms, executing a new lease for the Agency premises, completing any new training requirements, paying a renewal fee of $5,000, and bringing the Agency up to Brightstar Care's then-current standards.
This structure provides a potential for a long-term relationship between Brightstar Care and its franchisees, but it also emphasizes the importance of continuous compliance with the franchise agreement and standards. The fact that the renewal terms can include materially different conditions means that franchisees need to be prepared for potential changes in fees, performance standards, and other requirements upon renewal.