What requirements must a transferee meet to become a Brightstar Care franchisee?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor prior to any proposed Transfer of an equity or voting interest, and at any other time upon request, a list of all owners reflecting their respective present and/or proposed direct or indirect interests in you in such form as we may require.
12.4 Conditions to Our Consent to Transfer
You understand and acknowledge the vital importance of your performance to the market position and overall image of the BrightStar Care Agency Program. You also recognize the many subjective factors comprising the process by which we select a suitable franchisee. We will not unreasonably withhold our consent to a Transfer of any interest in this Franchise or any equity or voting interest in you, but such consent will remain a subjective determination that is subject to your and the transferee's compliance with and satisfaction of numerous conditions, including, but not limited to, the following:
- 12.4.1 (a) The transferee and its owners must demonstrate to our sole satisfaction that they meet all of our requirements for becoming a franchisee, including, without limitation, our financial, entrepreneurial, and managerial and business standards then in effect for similarlysituated franchisees, possess a good moral character, business reputation, and satisfactory credit rating, will comply with our instruction and training requirements, and have the aptitude and ability to operate the Agency (as may be evidenced by prior related business experience or otherwise, including, without limitation, that the transferee and its affiliates are in substantial operational compliance, at the time of the application, under all other franchise agreements for BrightStar Care Agencies to which they then are parties with us), (b) the transferee is aware of the incremental costs that must be invested to bring any and all agencies into compliance with our then-existing requirements for office locations, personnel, advertising and recruiting spend, and other items and has satisfactorily considered those costs in its investment plan and purchase price and (c) the transferee and/or its owners are not a private equity firm or a Search Fund.
- 12.4.2 As of the proposed Transfer's effective date, all your obligations under this Agreement and any other agreements with us are fully satisfied.
- 12.4.3 You have satisfied all monetary obligations owed to us and our affiliates and designated suppliers.
- 12.4.4 You have been in substantial compliance with this Agreement and all other agreements with us and our affiliates and designated suppliers throughout the Initial Term.
- 12.4.5 As of the proposed Transfer's effective date, all of the proposed transferee's obligations to us and our affiliates and designated suppliers (if any) must be fully satisfied.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a transfer of interest in a Brightstar Care franchise is subject to several conditions. Brightstar Care will not unreasonably withhold consent to a transfer, but the decision remains a subjective determination based on compliance with specific requirements.
The transferee must meet all of Brightstar Care's requirements for new franchisees. This includes satisfying the financial, entrepreneurial, managerial, and business standards in effect at the time of the transfer for similar franchisees. The transferee must also have a good moral character, business reputation, and a satisfactory credit rating. They need to show they will comply with Brightstar Care's training and instructions and have the aptitude and ability to operate the Brightstar Care Agency. If the transferee already has Brightstar Care franchises, those locations must be in substantial operational compliance.
Furthermore, the transferee needs to be aware of the costs required to bring the Brightstar Care agencies into compliance with then-existing requirements for office locations, personnel, advertising and recruiting spend, and other items. The transferee must also execute Brightstar Care's then-current form of franchise agreement, which may contain terms and conditions substantially different from the original agreement, for a term equal to the time remaining on the initial term or for a full initial ten (10) year term, as Brightstar Care determines. Additionally, the transferee and/or its designated managerial personnel must have completed the training then required of comparable agency franchisees and obtain all necessary licenses and registrations to operate the Brightstar Care Agency to the fullest extent of the Brightstar Care business model. Private equity firms or search funds are not eligible to be transferees.