factual

For Brightstar Care, what is the scope of the claims released by the Assignor Parties?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

  • A. Assignor and each of their respective heirs, successors, assigns, affiliates, shareholders, directors, employees, and agents, and on behalf of any other party claiming an interest through them (collectively and individually referred to as the "Assignor Parties" for purposes of Sections 14, 15 and 16 below), release and forever discharge us, our predecessors, successors, affiliates, directors, officers, shareholders, agents, employees and assigns (collectively and individually referred to as the "Franchisor Parties" for purposes of Sections 14, 15 and 16) and BrightStar Care Franchisees (Franchisor Parties and BrightStar Care Franchisees are collectively referred to as "BrightStar Parties" for purposes of Section 14, 15, and 16) of and from any and all claims, debts, liabilities, demands, obligations, costs, expenses, actions and causes of action, whether known or unknown, vested or contingent, which Assignor Parties may now or in the future own or hold, that in any way relate to the Old Franchise Agreement, any other agreement between Assignor and Franchisor or the BrightStar Parties, the Franchised Business, or the relationship between Assignor and Franchisor or the BrightStar Parties through the Hard Closing Date (collectively, "Claims"), for known or unknown damages or other losses including, but not limited to, any alleged violations of any deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state, federal, or other laws, statutes, rules or regulations, and any alleged violations of the Old Franchise Agreement or any other agreement between Assignor and Franchisor or the BrightStar Parties through and including the Execution Date.

Source: Item 23 — RECEIPTS (FDD pages 118–387)

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, the Assignor Parties, which include the assignor and their heirs, successors, assigns, affiliates, shareholders, directors, employees, and agents, release the Franchisor Parties and BrightStar Care Franchisees from any and all claims. These claims encompass debts, liabilities, demands, obligations, costs, expenses, actions, and causes of action, whether known or unknown, vested or contingent.

The scope of these released claims relates in any way to the Old Franchise Agreement, any other agreement between the Assignor and Franchisor or the BrightStar Parties, the Franchised Business, or the relationship between the Assignor and Franchisor or the BrightStar Parties through the Hard Closing Date. The release covers known or unknown damages or other losses, including alleged violations of deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state, federal, or other laws, statutes, rules, or regulations. It also includes alleged violations of the Old Franchise Agreement or any other agreement between the Assignor and Franchisor or the BrightStar Parties through and including the Execution Date.

In essence, this clause aims to provide a comprehensive release to Brightstar Care from any potential legal issues that could arise from the assignor's prior operation of the franchise. A prospective franchisee should carefully review this section with legal counsel to fully understand the implications of these releases and indemnifications, especially if they are acquiring an existing Brightstar Care franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.