What is the timeframe after receiving the Disclosure Document within which a Brightstar Care franchisee must execute the franchise agreement for the Expansion Territory?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee has a limited window to execute the franchise agreement for an Expansion Territory after receiving the Franchise Disclosure Document. Specifically, the franchisee must execute the Brightstar Care franchise agreement for the Expansion Territory no less than 14 days and no more than 30 days following receipt of the Disclosure Document. This timeframe is crucial for franchisees considering expansion, as failure to meet it results in the loss of the expansion option and the associated Expansion Option Fee.
This requirement ensures that franchisees act promptly on their expansion plans while still allowing sufficient time to review the agreement. The franchise agreement for the Expansion Territory may contain different terms and conditions from the original Franchise Agreement, so careful review is essential. The franchisee is also responsible for paying the Initial Franchise Fee (less the Expansion Option Fee) during this period.
Missing the deadline to execute the agreement has significant financial consequences. The franchisee forfeits the Expansion Option Fee, which, according to other sections of the FDD, is $10,000. Furthermore, the franchisee loses the right to open and operate an additional Brightstar Care Agency in the Expansion Territory. This strict timeline underscores the importance of preparation and due diligence when considering expansion opportunities with Brightstar Care.