What is the purpose of the Brightstar Care Addendum to the Franchise Agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
f which together will constitute one and the same instrument.
IN WITNESS WHEREOF the undersigned duly authorized representatives of the parties hereby execute this Business Associate Agreement as of COVERED ENTITY: BUSINESS ASSOCIATE: BrightStar Franchising, LLC Its: Its: Its:
EXHIBIT O
STANDARD RESALE ADDENDUM TO FRANCHISE AGREEMENT
STANDARD RESALE ADDENDUM TO BRIGHTSTAR FRANCHISING, LLC AGENCY FRANCHISE AGREEMENT
| This addendum (the "Addendum") to the BrightStar Franchising, LLC Agency Franchise Agreement is made and entered into as of (the "Execution Date") by and between BrightStar Franchising, LLC, an Illinois limited liability company with its principal place of business at 2275 Half Day Road, Suite 210, Bannockburn, IL 60015 ("we," "us," or "our"), and , with an address at (""you" or "your""). |
|---|
| BACKGROUND |
| A. |
| On |
| , we entered into a BrightStar Franchising, LLC Agency |
| Franchise Agreement (the "Original Franchise Agreement") with d/b/a |
| BrightStar Care of ("Seller") pursuant to which Seller was granted the right |
| to open and operate a BrightStar Care agency in the Protected Territory defined in Exhibit A to |
| the Original Franchise Agreement (the " |
| Agency"). |
| B. |
| Seller wishes to sell you its right to open and operate the [] Agency. As part |
| of that sale, you have agreed to sign our current form of Agency Franchise Agreement (the "2025 |
| Franchise Agreement") to govern your operation of the [] Agency during your Initial term. |
| Consistent with the parties' intent, the 2025 Franchise Agreement will be effective for 10 years |
| beginning (the "Effective Date") [insert the day of the transfer of the Agency]. |
| C. |
| The parties wish to amend the terms of the 2025 Franchise Agreement pursuant to |
| the terms and conditions of this Addendum. |
| D. |
| All references in the 2025 Franchise Agreement to the "Effective Date" of such |
| Agreement will mean the "Effective Date" as defined in this Addendum. |
| AGREEMENT |
| NOW THEREFORE, in consideration of the agreements, covenants and promises |
| contained in this Addendum and the 2025 Franchise Agreement, and for other consideration, the |
| receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: |
| 1. |
| Incorporation. The "Background" provisions above are incorporated into and made |
is deleted in its entirety and the following is inserted in its place. Sections 1.5.1 and 1.5.2 remain unchanged.
- Section 1.5 Performance Standards. Section 1.5 of the 2025 Franchise Agreement
a part of this Addendum by this reference.
If current weekly revenue is less than $15,000 use the following:
Section 1.5 Performance Standards. Beginning on the Effective Date, your monthly performance must meet or exceed the following "Monthly Performance Standards." Your Opening Date under this Franchise Agreement will
be deemed to be the Effective Date of [insert the first day of the term]. All references in the 2025 Franchise Agreement to the "Opening Date" of such Franchise Agreement will mean the "Effective Date," as the 2025 Franchise Agreement governs Franchisee's operation of the [______] Agency during the Initial Term authorized by the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to the 2025 Brightstar Care Franchise Disclosure Document, there are two types of addenda that may be attached to the franchise agreement. One addendum serves to amend the terms of the 2025 Franchise Agreement. This addendum is used when an existing franchisee sells their right to open and operate a Brightstar Care agency to a new franchisee, who then signs the current form of the Agency Franchise Agreement. The parties then use the addendum to modify specific terms of the 2025 Franchise Agreement to reflect the specifics of the transfer.
The other addendum, the Acknowledgment Addendum, is used to ensure that the franchisee understands the limitations on claims related to the franchise sale and business operation. It aims to confirm that no unauthorized or untrue statements were made during the franchise sales process. However, this Acknowledgment Addendum is not applicable if the franchise is being offered or sold in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, where state franchise registration/disclosure laws apply.
In practical terms, the first addendum allows Brightstar Care to tailor the standard franchise agreement to the specific circumstances of a franchise transfer, ensuring a smooth transition and clear understanding of terms. The Acknowledgment Addendum serves as a protective measure for Brightstar Care, confirming the franchisee's understanding of the agreement and preventing potential future disputes based on misrepresentations. Prospective franchisees should carefully review any addenda to fully understand their rights and obligations.