Does Brightstar Care require a new lease for the premises as a condition of franchise renewal?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon our termination of this Agreement in compliance with its terms, your termination of this Agreement without cause in breach of this Agreement, or expiration of this Agreement (if we offer you the right to renew the franchise for the Franchised Business but you choose not to renew), we have the right (but no obligation), exercisable by giving you written notice before or within thirty (30) days after the effective date of termination or expiration, to purchase the Agency's business and related goodwill (other than any goodwill we already own). We have the unrestricted right to assign this purchase option to a third party (including an affiliate), which then will have the rights and obligations described in this Section 14.3. We (or our designee) are entitled to all customary representations, warranties, and indemnities in our purchase, including representations and warranties regarding ownership and condition of, and title to, assets; liens and encumbrances on assets; validity of contracts and liabilities affecting the assets, contingent or otherwise; and indemnities for all actions, events, and conditions that existed or occurred in connection with the Agency before the closing of the purchase. You also agree (at our option) to assign to us (or our designee) the lease for the Agency's premises or to enter into a sublease for the remainder of the lease term on the same terms (including renewal options) as the lease.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–92)
What This Means (2025 FDD)
The 2025 Brightstar Care Franchise Disclosure Document states that upon termination or expiration of the Franchise Agreement, Brightstar Care has the option to purchase the agency's business. As part of this purchase option, Brightstar Care can choose to have the franchisee assign the existing lease for the agency's premises or enter into a sublease for the remainder of the lease term under the same terms, including renewal options.
This means that while Brightstar Care does not explicitly require a new lease as a condition of franchise renewal, they do have the option to take over the existing lease or sublease the premises if they choose to purchase the agency's business upon termination or expiration of the franchise agreement. This is not a mandatory requirement for renewal, but rather a potential outcome if Brightstar Care exercises its option to purchase the business.
For a prospective Brightstar Care franchisee, this implies that the terms of their initial lease agreement are important, as Brightstar Care could potentially assume or sublease the existing lease if they decide to purchase the business. Franchisees should carefully consider the terms of their lease and negotiate favorable renewal options, as these terms could be passed on to Brightstar Care if they exercise their purchase option. This clause protects Brightstar Care in the event that they want to continue operating the business at the same location after the franchise agreement ends.