Under what circumstances will a Brightstar Care franchisee be required to reimburse Brightstar Care for costs and expenses related to enforcing the Franchise Agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.1.3 Immediately pay all sums owing to us, including Royalty/Continuing Fees, General Marketing Fees, VA Fees, interest, and all other amounts owed to us (and our affiliates) that then are unpaid. Upon termination due to your default, such sums will include actual damages, costs and expenses, and reasonable attorneys' fees we incurred as a result of the default.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee may be required to cover Brightstar Care's costs and expenses, including attorney's fees, if the franchise agreement is terminated due to the franchisee's default. This encompasses situations where the franchisee has failed to meet their obligations under the agreement, leading to its termination.
This provision means that if a Brightstar Care franchisee breaches the franchise agreement and Brightstar Care terminates the agreement as a result, the franchisee will be responsible for not only the unpaid amounts owed to Brightstar Care but also any legal costs Brightstar Care incurs in enforcing its rights. This could include expenses related to pursuing legal action to recover unpaid royalties, marketing fees, or other amounts due.
For a prospective Brightstar Care franchisee, this highlights the importance of fully understanding and complying with all terms of the franchise agreement to avoid default. It also underscores the potential financial risks associated with failing to meet contractual obligations, as the costs of defending against or resolving a breach of contract claim can be substantial. Franchisees should ensure they have sufficient capital and resources to meet their obligations and seek legal counsel if they are unsure about any aspect of the agreement.