What is the purpose of the Acknowledgment Addendum to the Brightstar Care Agency Franchise Agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
As you know, you and we are entering into a Franchise Agreement for the operation of a BrightStar Care Agency Franchise. The purpose of this Acknowledgment Addendum is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate or misleading, and to be certain that you understand the limitations on claims that may be made by you by reason of the offer and sale of the franchise and operation of your business. Please review each of the following questions carefully and provide honest responses to each question.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the purpose of the Acknowledgment Addendum to the Brightstar Care Agency Franchise Agreement is to verify whether any unauthorized or untrue statements or promises were made to the franchisee during the franchise sales process. It also confirms the franchisee understands the limitations on claims they can make regarding the offer, sale, and operation of their Brightstar Care business.
Brightstar Care uses this addendum to ensure prospective franchisees have not been given misleading information that could later lead to disputes. By having franchisees review and respond to specific questions, Brightstar Care aims to document the franchisee's understanding of the franchise agreement's terms and the realities of operating a Brightstar Care franchise.
However, the FDD stipulates that this Acknowledgment Addendum is not applicable if the franchise offer or sale is subject to state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. This suggests that in these states, the franchise sales process is already closely regulated, and the additional addendum is deemed unnecessary.