When transferring a Brightstar Care franchise, what agreement(s) must the current franchisee and the proposed transferee execute?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
for a new market area or territory and/or (ii) a lead located in our Lead Management System ("LMS") (in both (i) and (ii), a "Lead" does not include someone who is an existing franchisee in the BrightStar Care Agency system). You acknowledge this "contact" may be in person, in writing, via electronic mail, by telephone, or by LMS.
- 12.4.9 The transferor must execute a general release, in a form satisfactory to us, of any and all claims against us and our owners, affiliates, officers, directors, employees, and agents.
- 12.4.10 The proposed transferee must execute our then-current form of franchise agreement and the Addendum to Franchise Agreement attached as Exhibit F to this Agreement, which may contain terms and conditions substantially different from those contained in this Agreement, for an initial term equal to the time remaining on the Initial Term of this Agreement as of the date of such Transfer or for a full initial ten (10) year term, as we determine.
- 12.4.11 You and the proposed transferee must execute our then-current Assignment and Consent Agreement, and Co-Territory Agreement (if applicable) in a form satisfactory to us.
- 12.4.12 The transferee and/or its designated managerial personnel must have completed to our satisfaction the training then required of comparable Agency franchisees.
- 12.4.13 The transferee must obtain and maintain all licenses and/or registrations necessary to operate the Agency to the fullest extent of the BrightStar business model.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, both the transferor (current franchisee) and the proposed transferee must execute several agreements as part of the transfer process. These agreements ensure that Brightstar Care maintains control over its franchise system and that the transferee meets the brand's standards.
Specifically, the current franchisee and the proposed new franchisee must execute Brightstar Care's then-current Assignment and Consent Agreement, and Co-Territory Agreement (if applicable). The transferor must also execute a general release, in a form satisfactory to Brightstar Care, releasing any and all claims against Brightstar Care and its related parties. The proposed transferee must execute Brightstar Care's then-current form of franchise agreement and the Addendum to Franchise Agreement, which may contain substantially different terms and conditions than the original agreement.
Additionally, both parties must execute documents to ensure the Franchised Business meets Brightstar Care's current standards. They must agree to perform all maintenance and upgrades required to bring the Franchised Business up to Brightstar Care's then current standards for an Agency, including upgrading the ABS and any other computer hardware and software as Brightstar Care requires. They must also provide Brightstar Care with a copy of the executed purchase agreement relating to the proposed Transfer with all supporting documents and schedules, including transferee's assumption of and agreement to faithfully perform all of the current franchisee's obligations under the existing Franchise Agreement. These measures protect Brightstar Care's interests and ensure a smooth transition while maintaining brand consistency.