Does Brightstar Care have the right to evaluate the qualifications of potential transferees and analyze their purchase contracts?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ightStar Care Agencies under one or more franchise agreements with us. In other words, we may disapprove the Transfer of a controlling ownership interest in you if the Transfer would result in new owners of yours effectively controlling the Agency and additional BrightStar Care Agencies under separate franchise agreements with us.
- 12.4.20 In addition to the above, you acknowledge that we have legitimate reasons to evaluate the qualifications of potential transferees and to analyze and critique the terms of their purchase contracts with you, and our contact with potential transferees to protect our business interests will not constitute improper or unlawful conduct. Additionally, you acknowledge and agree that, if you acquire more than one Agency during the Initial Term or any renewal term and subsequently decide to sell one or more of your Agencies, we have the right (as provided in Section 12.4.19 above) to approve the sale of only a single Agency to a transferee. You expressly authorize
us to investigate any potential transferee's qualifications, to analyze and critique the proposed purchase terms, to communicate candidly and truthfully with the transferee regarding your operation of the Agency, and to withhold consent for the reasons specified above. You waive any claim that the action we take in good faith to protect our business interests in connection with a proposed transfer, consistent with the conditions above, constitutes tortious interference with contractual or business relationships. Similarly, we may review all information regarding the Agency you give the proposed transferee, correct any information we believe is inaccurate, and give the proposed transferee copies of any reports you have given us or we have made regarding the Agency.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care has the right to evaluate the qualifications of potential transferees and analyze their purchase contracts. Specifically, Brightstar Care states that it has legitimate reasons to evaluate potential transferees' qualifications and analyze the terms of their purchase contracts.
Brightstar Care's contact with potential transferees to protect its business interests will not be considered improper or unlawful conduct. Brightstar Care is also authorized to investigate a potential transferee's qualifications, analyze and critique the proposed purchase terms, communicate candidly and truthfully with the transferee regarding the franchisee's operation of the agency, and withhold consent for specific reasons.
Brightstar Care may review all information regarding the agency that the franchisee provides to the proposed transferee, correct any information it believes is inaccurate, and give the proposed transferee copies of any reports the franchisee has given Brightstar Care or that Brightstar Care has created regarding the agency. Brightstar Care may also waive any of the conditions and qualifications, especially for transfers among original owners, transfers to trusts for spouses or children, and transfers to family members. However, Brightstar Care retains the right to recover all legal and administrative costs associated with the transfer.