How many renewal franchise terms can a Brightstar Care franchisee acquire?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
with an option to renew for two additional one-year terms for the Agency premises;
- (3) execute a general release in a form satisfactory to us of any and all claims against us, our parent, subsidiaries, and affiliates, and our and their officers, directors, attorneys, owners and employees;
- (4) complete any new training requirements not yet completed;
- (5) Pay us a renewal fee in an amount equal to five thousand dollars ($5,000); and
- (6) at your sole expense and if necessary in our sole opinion, bring the Agency up to our then-current standards for an Agency, including installation or upgrade of computer hardware and software and the ABS.
- (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 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.
Notwithstanding the above, however, the Five-Year Performance Standard you must meet or exceed during the first or second renewal franchise term, as applicable, in order to have the right to a second or third subsequent renewal franchise term, as applicable, will be, respectively, $3,900,000 in Net Billings, and you must maintain or
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee may have the opportunity to acquire up to two renewal franchise terms, in addition to the initial franchise term. Each of these renewal terms is for a period of five years. However, the ability to obtain these renewals is contingent upon meeting specific conditions and requirements set forth by Brightstar Care.
To be eligible for a second or third renewal franchise, the Brightstar Care franchisee must comply with the conditions for renewal, similar to those required for the initial renewal. A key performance standard is achieving $3,900,000 in Net Billings during the first or second renewal term, as applicable. Additionally, the franchisee must maintain or exceed $15,000 of Net Billings per week during the final year of each of the first and second renewal franchise terms.
It's important to note that the terms and conditions in the franchise agreement for the second or third renewal franchise may differ significantly from the original agreement or the preceding renewal agreement. These changes could include different fee structures or increased fees. The franchise agreement for the third renewal will explicitly state that no further renewals will be granted, marking the end of the franchise relationship unless a new agreement is negotiated.
Therefore, while Brightstar Care offers the possibility of extending the franchise term through renewals, franchisees must be aware of the performance benchmarks and potential changes in the franchise agreement that could impact their business operations and profitability.