For Brightstar Care, what is a 'third party user'?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
"master franchisee" means any person or entity that has entered into or hereafter enters into one or more agreements with you or any of your affiliates pursuant to which such person or entity has rights to grant one or more third parties franchises or related rights relating to any franchise system or concept offered at any time by you or any of your affiliates, which franchise system or concept includes use of a trade name containing the term "BrightStar" or "Bright Star"; provided, that a person or entity will cease to be a "master franchisee" hereunder upon the expiration or termination of substantially all of such rights to grant franchises or related rights under such agreement(s);"
""sub-franchisee" means any person or entity that has entered into or hereafter enters into one or more agreements with a master franchisee pursuant to which such person or entity is granted a franchise or related rights relating to any franchise system or concept offered at any time by you or any of your affiliates, which franchise system or concept includes use of a trade name containing the term "BrightStar" or "Bright Star"; provided, that a person or entity will cease to be a sub-franchisee upon the expiration or termination of substantially all of its material franchise rights under such agreement(s);"
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a 'third party user' is not explicitly defined within the provided excerpts. However, the term is mentioned in the context of master franchisees and sub-franchisees. A master franchisee is an entity that has agreements with BrightStar Care to grant franchises or related rights to third parties, while a sub-franchisee is an entity that receives a franchise or related rights from a master franchisee. These franchises involve using a trade name containing "BrightStar" or "Bright Star."
Given this context, a 'third party user' likely refers to an individual or entity that receives franchise rights or related permissions from a master franchisee, allowing them to operate a BrightStar Care franchise under the BrightStar name. This arrangement exists within a multi-layered franchising structure where BrightStar Care grants rights to master franchisees, who then sub-franchise to other parties.
Prospective franchisees should note that the rights and obligations of sub-franchisees may differ from those of franchisees who contract directly with BrightStar Care. It is important to understand the specific terms and conditions outlined in the agreements between the master franchisee and the sub-franchisee. Further clarification on the definition and implications of 'third party user' status should be sought from BrightStar Care during the due diligence process to fully understand the structure and obligations involved.