Under what circumstances is the Addendum described in this section signed for a Brightstar Care franchise?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
th the execution of the Franchise Agreement. | |
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- The provisions of this Addendum form an integral part of, and are incorporated into, the Franchise Agreement. This addendum is being signed because: (a) any of the franchise offer or sales activity occurred in California and you are a resident of California; or (b) your BrightStar Care Agency will be located in California.
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- The following language is added to the Franchise Agreement as new Section 14.3:
Upon our termination of this Agreement in compliance with its terms, your termination of this Agreement without cause in breach of this Agreement, or expiration of this Agreement (if we offer you the right to renew the franchise for the Franchised Business but you choose not to renew), we have the right (but no obligation), exercisable by giving you written notice before or within thirty (30) days after the effective date of termination or expiration, to purchase the Agency's business and related goodwill (other than any goodwill we already own). We have the unrestricted right to assign this purchase option to a third party (including an affiliate), which then will have the rights and obligations described in this Section 14.3. We (or our designee) are entitled to all customary representations, warranties, and indemnities in our purchase, including representations and warranties regarding ownership and condition of, and title to, assets; liens and encumbrances on assets; validity of contracts and liabilities affecting the assets, contingent or otherwise; and indemnities for all actions, events, and conditions that existed or occurred in connection with the Agency before the closing of the purchase. You also agree (at our option) to assign to us (or our designee) the lease for the Agency's premises or to enter into a sublease for the remainder of the lease term on the same terms (including renewal options) as the lease.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–92)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the circumstances requiring an addendum to the franchise agreement vary by state. For California, the addendum is signed if the franchise offer or sales activity occurred in California and the franchisee is a resident of California, or if the BrightStar Care Agency will be located in California.
For New York, an addendum is required if the franchise offer or sale was made in New York, the franchisee is a resident of New York, or the BrightStar Care Agency will be located or operated in New York. This addendum also clarifies that any provision inconsistent with New York General Business Law may not be enforceable and that the franchisee retains certain responsibilities and authority under New York Law, including operational control and compliance.
In Minnesota, the addendum is signed if the franchise offer or sale occurred in Minnesota, the franchisee is a resident of Minnesota, or the BrightStar Care Agency will be located or operated in Minnesota. This addendum ensures compliance with Minnesota Statute § 80C.14 regarding termination and non-renewal notices and protects the franchisee's rights under Minnesota Statutes §§ 80C.01 – 80C.22.
For Maryland, the addendum is required if the franchisee is a resident of Maryland or the BrightStar Care Agency will be located or operated in Maryland. This addendum modifies certain sections of the franchise agreement to ensure compliance with the Maryland Franchise Registration and Disclosure Law, particularly regarding releases, jurisdiction, limitations of claims, governing law, entire agreement, and acknowledgments.
In North Dakota, the addendum is signed if the franchisee is a resident of North Dakota and the BrightStar Care Agency will be located or operated in North Dakota, or if any of the franchise offer or sales activity occurred in North Dakota. This addendum addresses issues such as releases, covenants not to compete, termination or liquidated damages, arbitration proceedings, and the franchisee's right to bring actions in North Dakota, ensuring compliance with the North Dakota Franchise Investment Law.