What does Brightstar Care receive in consideration for granting the expansion option?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| GMF expense | was | $12,493,237 | and | $12,572,362 | for the | years ended |
2. Grant of Expansion Option
Subject to the terms and conditions of this Agreement and the Franchise Agreement, BrightStar grants to you, and you accept, an option to acquire from BrightStar the right to open and operate an additional BrightStar Care Agency in the Expansion Territory. In consideration of your payment of the Expansion Option Fee (defined below), BrightStar agrees that it will not offer or sell the right to open and operate a BrightStar Care Agency in the Expansion Territory to any third party during the Option Period (defined below) of this Agreement.
3. Expansion Option Fee
In consideration for BrightStar granting the expansion option under this Agreement, you agree to pay BrightStar a fee equal to Ten Thousand Dollars ($10,000) (the "Expansion Option Fee"). This sum will be due in full when you sign this Agreement and will be considered fully earned by BrightStar when paid, in consideration of BrightStar granting you the expansion option. The Expansion Option Fee is not refundable in whole or in part under any circumstance, including if the expansion option granted to you under this Agreement lapses. However, if you exercise your option and ent
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, in consideration for granting the expansion option, Brightstar Care receives an Expansion Option Fee of $10,000. This fee is due in full when the agreement is signed. Brightstar Care considers the fee fully earned upon payment for granting the expansion option.
The Expansion Option Fee is non-refundable, even if the expansion option lapses. However, if the franchisee exercises the expansion option and enters into a Brightstar Care Agency franchise agreement for the Expansion Territory during the Option Period, Brightstar Care will credit the Expansion Option Fee toward the Initial Franchise Fee payable under the new franchise agreement.
The option must be exercised within one year following the opening of the agency. Brightstar Care may extend the Option Period at its discretion if the franchisee is making sufficient progress toward meeting the requirements to exercise the expansion option.