How many consecutive days of failing to operate the Brightstar Care agency constitutes a default?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.2.10 Abandonment.
You (a) abandon the Agency, meaning you have deserted, walked away from, or closed the Agency under circumstances leading us to conclude that you have no intent to return to the Agency, regardless of how many days have passed since the apparent abandonment, or (b) fail actively and continuously to operate the Agency (a failure to operate the Agency for over two (2) consecutive days will be deemed a default under this clause (b), except where closure is due to fire, riot, flood, terrorist acts, or natural disaster and you notify us within three (3) days after the particular occurrence to obtain our written approval to remain closed for an agreed upon amount of time as is necessary under the circumstances before we will require you to re-open).
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, failing to actively and continuously operate the agency for over two consecutive days constitutes a default of the franchise agreement. There is an exception to this rule: if the closure is due to fire, riot, flood, terrorist acts, or natural disaster, and Brightstar Care is notified within three days of the event, the franchisee can seek written approval to remain closed for an agreed-upon amount of time.
This clause in the franchise agreement is significant because it sets a clear expectation for the continuous operation of the Brightstar Care agency. It means that franchisees must have systems in place to ensure the agency remains open and operational, even in the face of unforeseen circumstances. The two-day allowance is quite strict compared to other franchise systems, which may allow for longer periods of closure before considering it a default.
The exception for closures due to specific disasters provides some flexibility, but it also places the onus on the franchisee to promptly notify Brightstar Care and obtain written approval to remain closed. Failing to do so could result in a default, even if the closure was caused by a legitimate disaster. This highlights the importance of maintaining open communication with the franchisor and adhering to the outlined procedures.
Prospective franchisees should carefully consider this requirement and assess their ability to maintain continuous operations. They should also inquire about Brightstar Care's specific procedures for requesting approval to remain closed in the event of a disaster, as well as any other potential exceptions to this rule.