What is the 'Primary Agency' in the context of this Brightstar Care addendum?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| A. | | On our about, the parties entered into a BrightStar | | Franchising, LLC Agency Franchise Agreement (the "Primary Franchise Agreement") pursuant to | | which you were granted the right and undertook the obligation to open and operate a | | BRIGHTSTAR® | | agency (the "Primary Agency") in the Protected Territory defined therein. | C. | | The Franchise Agreement relates to a Medium Density Market, and you | | agree to comply with the obligations set forth in the Franchise Agreement and this Addendum in | | connection with the Medium Density Market Territory. Franchisees who operate their franchises | | in a Medium Density Market Territory must continue the operation of their Primary Agency in | | order to retain their franchise rights with respect to their Medium Density Markets. | D. | | You understand that your right to continue operating the Agency as a | | Medium Density Market agency, and to retain your franchise rights for the Agency, depend on the | | continued operation of your Primary Agency (in light of the waivers and incentives described | | herein and in our Operations Manual upon which the Agency may rely as a result of the Primary | | Agency's operation). The termination or expiration of the Primary Franchise Agreement for the | | Primary Agency will result in the automatic and concurrent termination or expiration of the | | Agency's Franchise Agreement, including this Addendum.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the 'Primary Agency' refers to an existing Brightstar Care agency that a franchisee already operates when they are granted the right to open an additional agency in a Medium Density Market. The operation of this new agency is dependent on the continued operation of the Primary Agency.
Specifically, the excerpt states that the franchisee was previously granted the right to open and operate a Brightstar Care agency in a Protected Territory under a 'Primary Franchise Agreement'. This existing agency is termed the 'Primary Agency'. The franchisee's rights to operate a subsequent agency in a Medium Density Market are contingent upon the continued operation of the Primary Agency.
This means that if the franchisee's Primary Franchise Agreement is terminated or expires, the franchise agreement for the additional agency in the Medium Density Market will also automatically terminate or expire. This condition highlights the interconnectedness of the franchise agreements and the importance of maintaining the Primary Agency in good standing to retain the rights to operate the additional location.