Under what circumstances is the Addendum to the Franchise Agreement required for Brightstar Care franchisees?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
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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) the offer or sale of the franchise to Franchisee was made in the State of Minnesota; (b) Franchisee is a resident of the State of Minnesota; and/or (c) the BrightStar Care Agency will be located or operated in the State of Minnesota.
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- The following sentence is added to the end of Sections 1.5 and 13:
With respect to franchises governed by Minnesota law, Franchisor will comply with Minnesota Statute § 80C.14, subdivision 3, 4, and 5 which requires, except in certain cases, that Franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement.
- The following sentence is added to the end of Sections 2.2, 12.4.9, and 12.7:
Notwithstanding the foregoing, Franchisee will not be required to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statute §§ 80C.01 – 80C.22.
- The following sentences are added to the end of Sections 15.3 and 15.8:
Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Franchisor from requiring arbitration or litigation to be conducted outside Minnesota. In addition, nothing in the Disclosure Document or the Franchise Agreement can abrogate or reduce any of Licensee's rights as provided for in Minnesota Statutes, Chapter 80C, or Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
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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) the offer or sale of the franchise to Franchisee was made in the State of New York; (b) Franchisee is a resident of the State of New York; and/or (c) the BrightStar Care Agency will be located or operated in the State of New York.
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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) Franchisee is a resident of the State of Maryland; or (b) the BrightStar Care Agency will be located or operated in Maryland.
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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) Franchisee is a resident of the State of North Dakota and the BrightStar Care Agency that Franchisee will operate under the Franchise Agreement will be located or operated in North Dakota, or (b) any of the franchise offer or sales activity occurred in North Dakota.
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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.
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, an addendum to the franchise agreement is required under specific circumstances related to the franchisee's location or residency, as well as where the Brightstar Care agency will operate. These addenda modify certain provisions of the standard franchise agreement to comply with state-specific franchise laws.
For instance, if the offer or sale of the franchise was made in California and the franchisee is a resident of California, or if the Brightstar Care agency will be located in California, an addendum is required. This addendum grants Brightstar Care the right to purchase the agency's business under certain termination or expiration scenarios. Similarly, addenda are required for franchisees in Maryland, North Dakota, Minnesota and New York to address specific legal requirements in those states.
These addenda typically include modifications to sections of the franchise agreement concerning releases, consent to jurisdiction, limitations of claims, governing law, and acknowledgments, ensuring compliance with state franchise laws. For example, the Maryland addendum specifies that general releases do not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. The North Dakota addendum addresses the enforceability of non-compete covenants and termination damages, while the Minnesota addendum ensures compliance with Minnesota statutes regarding termination and non-renewal notices. The New York addendum ensures that the franchisee retains full authority over the operation and management of the agency, regardless of the franchise agreement's provisions.
Prospective Brightstar Care franchisees should carefully review the FDD and any addenda applicable to their state to understand their rights and obligations under the franchise agreement. It is essential to consult with a legal professional to ensure full comprehension of the implications of these state-specific modifications.