Regarding the Brightstar Care expansion option, what is the timeframe after receiving the Disclosure Document in which a franchisee must execute the franchise agreement for the Expansion Territory?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Not less than 14 days and not more than 30 days following your receipt of the Disclosure Document, you must execute the then-current BrightStar Franchising, LLC Agency franchise agreement for the Expansion Territory (which may contain materially different terms and conditions from the Franchise Agreement) and pay the Initial Franchise Fee (less the Expansion Option Fee) due under the franchise agreement for the Expansion Territory.
- (c) If you fail to perform any of the acts or fail to deliver any of the notices required by subsections (a) or (b) of this Section in a timely fashion, your failure will be considered your election not to exercise your option rights under this Agreement, and will cause your option rights to lapse and expire without further notice or action by BrightStar, and you will no longer have the option to acquire from BrightStar the right to open and operate an additional BrightStar Care Agency in the Expansion Territory, in which case you will forfeit the Expansion Option Fee you paid to BrightStar under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee has a specific window to execute the franchise agreement for an expansion territory after receiving the Franchise Disclosure Document. This timeframe is crucial for franchisees considering expansion, as missing it will result in forfeiting the expansion option.
Specifically, the franchisee must execute the Brightstar Care franchise agreement for the Expansion Territory no less than 14 days and no more than 30 days following receipt of the Disclosure Document. This agreement for the expansion territory may contain different terms and conditions from the original franchise agreement. During this period, the franchisee must also pay the Initial Franchise Fee, less the Expansion Option Fee, as stipulated in the franchise agreement for the Expansion Territory.
Failure to meet these deadlines will result in the franchisee's option rights lapsing, meaning they will lose the opportunity to open and operate an additional Brightstar Care Agency in the Expansion Territory. Additionally, the Expansion Option Fee, which is paid upfront, will be forfeited. Therefore, it is essential for franchisees to act promptly and ensure they meet all requirements within the specified timeframe to successfully exercise their expansion option with Brightstar Care.