What rights must the transferee have regarding the premises and lease for a Brightstar Care franchise transfer?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You must secure real estate for the operation of the Franchised Business. Within one hundred fifty (150) days after this Agreement's Effective Date, you must secure a Premises for the Agency that is acceptable to us. You must use the Premises solely to operate the Agency in the manner and pursuant to the standards prescribed in this Agreement, the Operations Manual, or otherwise in writing and must refrain from using or permitting use of the Premises for any other purpose or activity at any time. The Agency Premises may not be located in a person's home. You must give us a copy of the proposed lease, which we must approve prior to execution, and which must give us:
6.1.1 The right to enter the Premises to make any modification necessary to protect the Licensed Marks and a "Collateral Assignment of Lease" in the form attached hereto as Exhibit C, executed by you and the lessor of the Premises, giving us notice of your default under the lease, a right to cure such default, and the right to assume the lease (including our right to assume the lease upon expiration or termination of this Agreement), as well as the further right to sublease or assign to a BrightStar Care Agency franchisee (and if we exercise our rights under the Collateral Assignment of Lease, we will have the option to acquire all fixtures, equipment, and other leasehold improvements on the Premises at fair market value).
6.1.2 The terms of an office building lease, including any option for renewal, must be a minimum of one (1) year with the option to renew for two additional one (1) year terms for a total of three years.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee must secure real estate for the operation of the franchised business. Within 150 days after the agreement's effective date, the franchisee must secure premises acceptable to Brightstar Care. The premises must be used solely to operate the agency according to the standards prescribed in the agreement, the operations manual, or in writing, and cannot be used for any other purpose or activity. The agency premises cannot be located in a person's home.
Brightstar Care requires a copy of the proposed lease for approval before execution. The lease must grant Brightstar Care the right to enter the premises to make modifications necessary to protect the licensed marks. It also requires a "Collateral Assignment of Lease" in the form attached as Exhibit C, executed by the franchisee and the lessor, providing Brightstar Care with notice of the franchisee's default under the lease, a right to cure such default, and the right to assume the lease, including the right to assume the lease upon expiration or termination of the agreement. Brightstar Care also has the right to sublease or assign the lease to another Brightstar Care franchisee. If Brightstar Care exercises its rights under the Collateral Assignment of Lease, it has the option to acquire all fixtures, equipment, and other leasehold improvements on the premises at fair market value.
The terms of an office building lease, including any option for renewal, must be a minimum of one year with the option to renew for two additional one-year terms, totaling three years. This ensures a stable location for the Brightstar Care agency and protects Brightstar Care's interests in maintaining consistent brand standards and operational control.