Under the Brightstar Care assignment agreement, what post-termination obligations from the Old Franchise Agreement must the Assignor comply with upon transfer of interest?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Assignor's Post-Termination Obligations. A Assignor agrees that, upon transfer of its interest in the Franchised Business to Assignee, Assignor will 1) comply with all posttermination obligations set forth in Sections and of the Old Franchise Agreement, which obligations shall be incorporated herein by reference, 2) comply with any other provisions of the Old Franchise Agreement which, by their nature, survive termination or expiration of the Old Franchise Agreement, 3) not engage in any disparaging communications (whether verbal, written, online or through any social media platform) regarding BrightStar, its affiliates, its franchisees, employees, officers, agents, directors or suppliers, and 4) pay all outstanding invoices with Franchisor's preferred vendors and all outstanding creditors within 30 days after the Hard Closing Date.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, when an assignor (the seller of a franchise) transfers their interest in a franchised business to an assignee (the buyer), the assignor must adhere to specific post-termination obligations from the Old Franchise Agreement.
Specifically, the assignor must comply with all post-termination obligations outlined in particular sections of the Old Franchise Agreement, which are incorporated by reference into the assignment agreement. The assignor must also comply with any other provisions of the Old Franchise Agreement that, by their nature, are meant to survive the termination or expiration of the agreement.
Furthermore, the assignor is prohibited from engaging in any disparaging communications, whether verbal, written, online, or through social media, regarding BrightStar, its affiliates, franchisees, employees, officers, agents, directors, or suppliers. Finally, the assignor is responsible for paying all outstanding invoices with BrightStar Care's preferred vendors and all outstanding creditors within 30 days after the Hard Closing Date, which is the date the transfer of the franchise is completed.