Who is required to sign the Personal Guarantee, Covenants and Assumption of Obligations Agreement or Spousal or Life Partner Consent for a Brightstar Care franchise?

According to Brightstar Care's 2025 Franchise Disclosure Document, the Personal Guarantee, Covenants and Assumption of Obligations Agreement or Spousal or Life Partner Consent attached to the Franchise Agreement must be signed by specific individuals. If the franchisee is an individual, both the franchisee and their spouse must sign the agreement. If the franchisee is a legal entity, such as a corporation or LLC, each person owning an equity or voting interest in the entity, along with their spouse, is required to sign the agreement.

This requirement ensures that Brightstar Care has recourse to the personal assets of the franchisee and their spouse, or the owners of the legal entity and their spouses, in the event of a default or breach of the Franchise Agreement. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and demonstrates the franchisee's commitment to the business.

Prospective Brightstar Care franchisees should carefully review the Personal Guarantee, Covenants and Assumption of Obligations Agreement and Spousal or Life Partner Consent with their legal and financial advisors to fully understand the obligations and liabilities they are undertaking. It is important to be aware that this agreement could potentially put personal assets at risk if the franchise business does not perform as expected.