Does Brightstar Care have any restrictions on assigning the Franchise Agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will not assign its rights under the Franchise Agreement except to an assignee who in Franchisor's good faith and judgment is willing and able to assume Franchisor's obligations under the Franchise Agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–92)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care has some restrictions regarding the assignment of the Franchise Agreement. Specifically, Brightstar Care states that they will not assign its rights under the Franchise Agreement except to an assignee who in Brightstar Care's good faith and judgment is willing and able to assume Brightstar Care's obligations under the Franchise Agreement.
This means that Brightstar Care, as the franchisor, can only transfer the agreement to another party if that party is deemed capable of fulfilling the obligations outlined in the agreement. This clause likely protects franchisees by ensuring that any new franchisor has the resources and willingness to support the Brightstar Care franchise system.
This type of clause is relatively common in franchise agreements. It protects the interests of both the franchisor and the franchisees by ensuring a smooth transition if the franchisor's rights are ever assigned. Prospective franchisees should carefully review the conditions under which Brightstar Care can assign the agreement to fully understand their rights and obligations in such a scenario.