Can a private equity firm or Search Fund become a Brightstar Care transferee?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.4.1 (a) The transferee and its owners must demonstrate to our sole satisfaction that they meet all of our requirements for becoming a franchisee, including, without limitation, our financial, entrepreneurial, and managerial and business standards then in effect for similarlysituated franchisees, possess a good moral character, business reputation, and satisfactory credit rating, will comply with our instruction and training requirements, and have the aptitude and ability to operate the Agency (as may be evidenced by prior related business experience or otherwise, including, without limitation, that the transferee and its affiliates are in substantial operational compliance, at the time of the application, under all other franchise agreements for BrightStar Care Agencies to which they then are parties with us), (b) the transferee is aware of the incremental costs that must be invested to bring 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.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a private equity firm or a Search Fund cannot become a Brightstar Care transferee. Brightstar Care requires that the transferee and its owners meet all the requirements for becoming a franchisee.
Brightstar Care states that the transferee must demonstrate that they meet the company's financial, entrepreneurial, managerial, and business standards. The potential transferee must also possess a good moral character, business reputation, and satisfactory credit rating. They must also comply with Brightstar Care's instruction and training requirements and have the aptitude and ability to operate the agency.
Brightstar Care also stipulates that the transferee must be aware of the incremental costs that must be invested to bring any and all agencies into compliance with their then-existing requirements for office locations, personnel, advertising and recruiting spend, and other items. The potential transferee must have satisfactorily considered those costs in its investment plan and purchase price. However, the document explicitly states that the transferee and/or its owners cannot be a private equity firm or a Search Fund.