When does a person or entity cease to be a 'sub-franchisee' for Brightstar Care under the Microsoft agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
"sub-franchisee" means any person or entity that has entered into or hereafter enters into one or more agreements with a master franchisee pursuant to which such person or entity is granted a franchise or related rights relating to any franchise system or concept offered at any time by you or any of your affiliates, which franchise system or concept includes use of a trade name containing the term "BrightStar" or "Bright Star"; provided, that a person or entity will cease to be a sub-franchisee upon the expiration or termination of substantially all of its material franchise rights under such agreement(s);"
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a sub-franchisee is defined within the context of agreements with master franchisees. Specifically, a 'sub-franchisee' is any person or entity that enters into an agreement with a master franchisee, granting them franchise or related rights to a franchise system that Brightstar Care or its affiliates offer, which includes using a trade name with 'BrightStar' or 'Bright Star'.
The critical point is that this sub-franchisee status is not permanent. The 2025 FDD states that a person or entity will no longer be considered a sub-franchisee once there is an expiration or termination of substantially all of its material franchise rights under the agreement(s) with the master franchisee. This means the end of the sub-franchise agreement, for whatever reason, also terminates the sub-franchisee status.
For a potential Brightstar Care franchisee, this definition clarifies the relationships within the franchise network, particularly when master franchisees are involved. It also highlights that the rights and obligations of a sub-franchisee are directly tied to the terms and duration of their agreement with the master franchisee. Understanding these relationships is crucial for anyone considering becoming a Brightstar Care franchisee, especially if their agreement is with a master franchisee rather than directly with Brightstar Care itself.