What obligations must the proposed transferee satisfy to Brightstar Care and its affiliates as of the proposed transfer's effective date?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
any and all agencies into compliance with our then-existing requirements for office locations, personnel, advertising and recruiting spend, and other items and has satisfactorily considered those costs in its investment plan and purchase price and (c) the transferee and/or its owners are not a private equity firm or a Search Fund.
- 12.4.2 As of the proposed Transfer's effective date, all your obligations under this Agreement and any other agreements with us are fully satisfied.
- 12.4.3 You have satisfied all monetary obligations owed to us and our affiliates and designated suppliers.
- 12.4.4 You have been in substantial compliance with this Agreement and all other agreements with us and our affiliates and designated suppliers throughout the Initial Term.
- 12.4.5 As of the proposed Transfer's effective date, all of the proposed transferee's obligations to us and our affiliates and designated suppliers (if any) must be fully satisfied.
- 12.4.6 As of the proposed Transfer's effective date, the transferee must have the unconditional right to occupy the Premises and assume your lease for its remaining term (and to secure an option to renew the lease on terms agreeable to the landlord and transferee).
- 12.4.7 Except as provided below in this Section 12.4.7, if the Transfer results in a 50% or more change in your ownership, you or the transferee must pay us a transfer fee of $15,000 for the Agency and (but only if a Transfer of multiple agencies is permitted by us as described below in Section 12.4.19) $5,000 for each additional agency transferred, plus any broker fees we incur in helping you find a transferee.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, several conditions must be met by both the transferor (the current franchisee) and the transferee (the prospective new franchisee) for a transfer to be approved. As of the proposed transfer's effective date, all of the transferor's obligations under the Franchise Agreement and any other agreements with Brightstar Care must be fully satisfied. This includes satisfying all monetary obligations owed to Brightstar Care, its affiliates, and designated suppliers. The transferor must also have been in substantial compliance with the Franchise Agreement and all other agreements with Brightstar Care and its affiliates and designated suppliers throughout the Initial Term.
In addition to the transferor's obligations, the transferee must also meet certain requirements. The transferee and its owners must demonstrate to Brightstar Care's satisfaction that they meet all the requirements for becoming a franchisee. This includes meeting Brightstar Care's financial, entrepreneurial, managerial, and business standards, possessing good moral character, business reputation, and a satisfactory credit rating. The transferee must also comply with Brightstar Care's instruction and training requirements and have the aptitude and ability to operate the Agency. The transferee must also be aware of the incremental costs that must be invested to bring any and all agencies into compliance with Brightstar Care's then-existing requirements for office locations, personnel, advertising and recruiting spend, and other items and has satisfactorily considered those costs in its investment plan and purchase price. Furthermore, the transferee and/or its owners cannot be a private equity firm or a Search Fund.
These conditions are in place to ensure that any new franchisee taking over a Brightstar Care agency is fully qualified and capable of maintaining the standards and reputation of the Brightstar Care brand. Brightstar Care retains the right to evaluate the qualifications of potential transferees and analyze the terms of their purchase contracts to protect its business interests. Prospective franchisees should carefully review all transfer conditions outlined in Item 22 of the Franchise Agreement and ensure they can meet these requirements before proceeding with a transfer.