When are Brightstar Care Royalty/Continuing Fees due and payable, and what payment method is required?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
xisting franchisees in the system, in which case you must comply with the requirement to ensure brand and system consistency.
4.9 Method of Payment and Electronic Funds Transfer
Unless otherwise agreed between you and us, all fees and other amounts paid to us or any affiliate must be made in the form of an electronic or similar funds transfer in the appropriate amount(s) from your bank account. We reserve the right to require you to pay any fees due under this Agreement at any intervals we may designate and by such means we specify from time to time. You agree to execute and deliver to your bank and to us those documents necessary to authorize such withdrawals and to make payment or deposit as directed by us, BrightStar Technology, or our respective affiliates. The forms of authorization for electronic transfer of funds are attached hereto as Exhibit B-1 and Exhibit B-2. You further agree not thereafter to terminate such authorization so long as this Agreement is in effect. You agree not to close such bank account without prior notice to us and the establishment of a substitute bank account permitting such withdrawals. You also agree that if a direct electronic funds transfer or other withdrawal program is not available at the bank at which you currently do business, you will take all reasonable and necessary steps to establish an account at a bank which does have such a program.
4.10 Payment and Interest on Late Payments
Except as may otherwise be provided in this Agreement, fees and other amounts due under this Agreement must be paid 28 days after the date of our invoice. We or our affiliate will initiate payment on all invoices from your bank account 28 days after the date of the invoice by electronic funds transfer as provided in Section 4.9 above. If any fee or other amount due under this Agreement is not paid when due, you must pay interest on any balance due from the date due until such amount is paid in full at the highest then-applicable legal rate for open account business credit, not to exceed one and one-half percent (1.5%) per month.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, fees and other amounts due under the agreement must be paid 28 days after the date of the invoice. Brightstar Care or its affiliate will initiate payment on all invoices from the franchisee's bank account 28 days after the invoice date via electronic funds transfer.
Unless otherwise agreed, all fees and other amounts paid to Brightstar Care or any affiliate must be made via electronic or similar funds transfer from the franchisee's bank account. Brightstar Care retains the right to require franchisees to pay any fees due under the agreement at intervals they designate and by means they specify. Franchisees must execute and deliver documents to their bank and to Brightstar Care to authorize such withdrawals and payments.
Franchisees must not terminate such authorization while the agreement is in effect and must provide prior notice to Brightstar Care before closing the bank account, establishing a substitute account that permits such withdrawals. If a direct electronic funds transfer or other withdrawal program is unavailable at the franchisee's current bank, they must take steps to establish an account at a bank that offers such a program. If any fee or other amount is not paid when due, the franchisee must pay interest on the balance from the due date until paid in full at the highest applicable legal rate for open account business credit, not exceeding 1.5% per month.