Can Brightstar Care terminate the agreement if a franchisee makes a material misrepresentation during the application process?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
(www.brightstarcare.com), franchise management and all modifications thereto that may be made from time to time (the "Athena Business System" or "ABS"); and
WHEREAS, you have applied to us for a fra
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the franchise agreement is entered into based on the representations made by the franchisee in their application. Specifically, the document states that Brightstar Care's approval of a franchise application is "in reliance upon all of the representations made therein".
While the FDD does not explicitly state that a material misrepresentation during the application process is grounds for termination, it does state several conditions under which Brightstar Care can terminate the agreement. These include failure to pay owed sums, under-reporting of gross sales, offering unauthorized services, failing to maintain quality control, and misuse of licensed marks or confidential information. These terminations can occur if the defaults remain uncured after a specified cure period, either 15 or 30 days depending on the specific default.
Given that Brightstar Care approves franchise applications based on the representations made within them, a material misrepresentation could be interpreted as a failure to uphold the agreement's terms. However, since this is not explicitly stated, prospective franchisees should seek clarification from Brightstar Care regarding whether misrepresentations during the application process constitute grounds for termination.