When signing the Brightstar Care Agency Franchise Agreement, what other document are the parties signing concurrently?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| This addendum (the "Addendum") to the BrightStar Franchising, LLC Agency Franchise Agreement is made and entered into as of (the "Execution Date") by and between BrightStar Franchising, LLC, an Illinois limited liability company with its principal place of business at 2275 Half Day Road, Suite 210, Bannockburn, IL 60015 ("we," "us," or "our"), and with an address at (""you" or "your""). All capitalized terms not defined in this Addendum have the meanings ascribed to them in the Franchise Agreement (as defined below). This Addendum is effective on the date BrightStar signs below (the "Effective Date"). |
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| BACKGROUND |
| A. |
| On our about, the parties entered into a BrightStar |
| Franchising, LLC Agency Franchise Agreement (the "Primary Franchise Agreement") pursuant to |
| which you were granted the right and undertook the obligation to open and operate a |
| BRIGHTSTAR® |
| agency (the "Primary Agency") in the Protected Territory defined therein. |
| B. |
| Concurrently with the execution of this Addendum, the parties are signing |
| an additional BrightStar Franchising, LLC Agency Franchise Agreement (the "Franchise |
| Agreement"), to which this Addendum is attached, pursuant to which you are being granted the |
| right and undertake the obligation to open and operate a BRIGHTSTAR® |
| agency (the "Agency") in |
| the Protected Territory defined in Exhibit A. |
| C. |
| The Franchise Agreement relates to a Medium Density Market, and you |
| agree to comply with the obligations set forth in the Franchise Agreement and this Addendum in |
| connection with the Medium Density Market Territory. Franchisees who operate their franchises |
| in a Medium Density Market Territory must continue the operation of their Primary Agency in |
| order to retain their franchise rights with respect to their Medium Density Markets. |
| D. |
| You understand that your right to continue operating the Agency as a |
| Medium Density Market agency, and to retain your franchise rights for the Agency, depend on the |
| continued operation of your Primary Agency (in light of the waivers and incentives described |
| herein and in our Operations Manual upon which the Agency may rely as a result of the Primary |
| Agency's operation). The termination or expiration of the Primary Franchise Agreement for the |
| Primary Agency will result in the automatic and concurrent termination or expiration of the |
| Agency's Franchise Agreement, including this Addendum. |
| E. |
| The parties agree to amend the Franchise Agreement pursuant to the terms |
| and conditions below. |
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, when signing the Brightstar Franchising, LLC Agency Franchise Agreement, the parties are also signing an addendum. This addendum is attached to the Franchise Agreement. The purpose of the addendum is to grant the franchisee the right and obligation to open and operate a Brightstar Care agency in a defined protected territory.
This addendum modifies specific sections of the standard Franchise Agreement. For instance, it amends Section 1.5, which pertains to performance standards. The addendum specifies the franchisee's obligations related to operating in a Medium Density Market territory and emphasizes that the franchisee must continue operating their Primary Agency to maintain franchise rights in the Medium Density Market.
Furthermore, the addendum states that the termination or expiration of the Primary Franchise Agreement will lead to the automatic termination or expiration of the Agency's Franchise Agreement, including the addendum. This highlights the interconnectedness of the agreements and the importance of maintaining the Primary Agency's operation for franchisees expanding into Medium Density Markets.