For Brightstar Care, does the submission of the Franchise Agreement automatically constitute an offer?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
The expansion option granted under this Agreement must be exercised in the following manner:
- (a) Before expiration of the Option Period and provided that you are in compliance with the requirements of Section 8 below, you must give BrightStar written notice of your intent to exercise the expansion option granted under this Agreement and provide BrightStar all documents and information required by its then-current expansion policy requirements. You must also request from BrightStar a copy of its then-current Franchise Disclosure Document (the "Disclosure Document"), including the then-current BrightStar Franchising, LLC Agency franchise agreement. You must immediately acknowledge your receipt by executing the Receipt in the Disclosure Document and return it to BrightStar.
- (b) Not less than 14 days and not more than 30 days following your receipt of the Disclosure Document, you must execute the then-current BrightStar Franchising, LLC Agency franchise agreement for the Expansion Territory (which may contain materially different terms and conditions from the Franchise Agreement) and pay the Initial Franchise Fee (less the Expansion Option Fee) due under the franchise agreement for the Expansion Territory.
- (c) If you fail to perform any of the acts or fail to deliver any of the notices required by subsections (a) or (b) of this Section in a timely fashion, your failure will be considered your election not to exercise your option rights under this Agreement, and will cause your option rights to lapse and expire without further notice or action by BrightStar, and you will no longer have the option to acquire from BrightStar the right to open and operate an additional BrightStar Care Agency in the Expansion Territory, in which case you will forfeit the Expansion Option Fee you paid to BrightStar under this Agreement.
- (d) If you exercise your option right in the form and manner described in this Agreement, and you satisfy in all respects all of the conditions contained in Section 8 of this Agreement, BrightStar will countersign the franchise agreement for the Expansion Territory.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to the 2025 Brightstar Care FDD, the submission of a Franchise Agreement does not automatically mean that Brightstar Care has made an offer. The FDD outlines the process for an existing franchisee to acquire the rights to open an additional Brightstar Care Agency in an expansion territory.
Specifically, if a franchisee wants to expand, they must provide Brightstar Care with written notice of their intent to exercise the expansion option before the option period expires. They also need to provide all required documents and information as per Brightstar Care's current expansion policy. The franchisee must request and acknowledge receipt of the current Franchise Disclosure Document, including the current Brightstar Franchising, LLC Agency franchise agreement.
Within a specific timeframe (not less than 14 days and not more than 30 days) after receiving the Disclosure Document, the franchisee must execute the then-current Brightstar Franchising, LLC Agency franchise agreement for the expansion territory and pay the initial franchise fee, minus the expansion option fee. Brightstar Care will countersign the franchise agreement for the expansion territory only if the franchisee properly exercises their option right and satisfies all conditions outlined in the agreement.