Does the Brightstar Care personal guarantee extend to modifications of the Franchise Agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ion with the franchise.
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first written above.
FRANCHISOR (US): BRIGHTSTAR FRANCHISING, LLC FRANCHISEE (YOU): FRANCHISEE (YOU): By: Name: Title: FRANCHISEE (YOU): By: Name: Title: FRANCHISEE (YOU): By: Name: Title:
EXHIBIT E
PERSONAL GUARANTEE AND AGREEMENT TO BE BOUND PERSONALLY BY THE TERMS AND CONDITIONS OF THE FRANCHISE AGREEMENT
In consideration of, and as an inducement to, the execution of that certain Franchise Agreement (the "Agreement") on this date by BrightStar Franchising, LLC, an Illinois limited liability company ("Franchisor"), each of the undersigned personally and unconditionally (a) guarantees to Franchisor and its successors and assigns, for the term of the Agreement (including, without limitation, any extensions of its term) and afterward as provided in the Agreement, that _____________________________ ("Franchisee") will punctually pay and perform each and every undertaking, agreement, and covenant set forth in the Agreement (including, without limitation, any amendments or modifications of the Agreement) and (b) agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Agreement (including, without limitation, any amendments or modifications of
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the personal guarantee extends to any amendments or modifications of the Franchise Agreement. Specifically, the guarantor unconditionally guarantees that the franchisee will perform every agreement and covenant in the Franchise Agreement, including any amendments or modifications. The guarantor also agrees to be personally bound by and liable for any breach of any provision in the agreement, including amendments or modifications.
This means that if the Franchise Agreement is modified at any point, the person who signed the personal guarantee remains responsible for ensuring the franchisee complies with the changes. This includes financial obligations, required actions, and restrictions outlined in the original agreement and any subsequent changes.
For a prospective Brightstar Care franchisee, this highlights the importance of understanding the full scope of the personal guarantee. Before signing, potential franchisees should carefully review the Franchise Agreement and any potential future modifications, as the guarantor will be held accountable for all aspects of the agreement. It is advisable to seek legal counsel to fully understand the implications of the personal guarantee and its extension to modifications.