What is the relationship between the Primary Agency and the Agency in the Brightstar Care Addendum?
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].
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the Agency described in the addendum is dependent on the continued operation of the Primary Agency. The franchisee must already have an existing Brightstar Care franchise, referred to as the Primary Agency, in order to be granted the right to open an additional Brightstar Care Agency in a Medium Density Market.
Specifically, the addendum states that the franchisee's right to operate the new Agency and retain its franchise rights depends on the continued operation of the Primary Agency. The waivers and incentives that the new Agency may benefit from are tied to the Primary Agency's operation. This means that the performance and standing of the Primary Agency directly impacts the new Agency's ability to operate.
Most importantly, the termination or expiration of the Primary Franchise Agreement automatically leads to the termination or expiration of the new Agency's Franchise Agreement and the addendum. This creates a significant risk for the franchisee, as any issues with the Primary Agency could jeopardize the new Agency as well. Brightstar Care emphasizes that this Medium Density Territory is related to and dependent upon the continued operation of the Primary Agency, reinforcing the interconnectedness of the two franchises.