factual

What standards must a Brightstar Care franchisee maintain for their premises during the Initial Term?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

evelop and establish other systems using the Licensed Marks, similar marks, or any other marks and to grant licenses thereto without providing any rights to you.

6. STANDARDS OF OPERATION

6.1 Site Location and Lease Premises

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.

6.2 Licensure Requirements

After signing this Agreement, you must diligently and actively pursue all licenses to enable you to perform staffing, companion, and personal care services and open within 180 days after signing this Agreement. Once you achieve $15,000/week in weekly Net Billings (although we make no representation how long this will take or whether it will occur), you are required to apply for licensure to enable you to perform the fullest extent of the BrightStar business model at the time, unless prohibited by state regulations. However, if state regulations change, providing you an opportunity to obtain your skilled license, you must take action immediately to obtain skilled licenses, as soon as possible.

Source: Item 22 — CONTRACTS (FDD pages 117–118)

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees must secure real estate for their agency's operation, with the premises being acceptable to Brightstar Care. The location must be secured within 150 days of the franchise agreement's effective date. The premises must be used solely for operating the Brightstar Care agency according to the standards outlined in the agreement, the operations manual, or in writing. 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 for modifications to protect the licensed marks. It also requires a "Collateral Assignment of Lease," giving Brightstar Care notice of default, the right to cure the default, and the right to assume the lease, including upon expiration or termination of the agreement. Brightstar Care also has the right to sublease or assign the lease to another Brightstar Care franchisee and the option to acquire fixtures, equipment, and leasehold improvements at fair market value if they exercise their rights under the Collateral Assignment of Lease.

The lease terms for an office building must be a minimum of one year, with an option to renew for two additional one-year terms, totaling three years. If a franchisee's lease is terminated or not renewed through no fault of their own, they may relocate the agency to another premises within their protected territory, subject to Brightstar Care's written consent. The franchisee is responsible for conforming the substitute premises to Brightstar Care's current standards for premises design, furniture, fixtures, and equipment. The franchisee must also remove any visible signs indicating the previous location was a Brightstar Care agency.

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.