Under what circumstances related to the Control Person will a Brightstar Care franchisee be considered in default of the Franchise Agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Default of the Agreement. You will be in default under the Franchise Agreement if any of the following occurs: (i) at any time during the Franchise Agreement's term, your Agency is not under the designated Control Person's direct supervision, (ii) you designate a replacement Control Person without first providing us with advance written notice of this change and we approve the change, or (iii) any replacement Control Person does not meet our then-current Control Person standards and requirements (referenced above). Upon any of these occurrences, we have the right, after giving you advance written notice of the default and a 15 day opportunity to cure the default, to terminate the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee can be in default of their Franchise Agreement under specific circumstances related to the Control Person. The Control Person is responsible for the direct supervision and general management of the Brightstar Care agency.
A franchisee will be in default if, at any time during the term of the Franchise Agreement, the agency is not under the direct supervision of the designated Control Person. Default also occurs if a franchisee designates a replacement Control Person without providing advance written notice to Brightstar Care and receiving their approval.
Additionally, a franchisee will be in default if any replacement Control Person does not meet Brightstar Care's then-current standards and requirements for the role. If any of these situations occur, Brightstar Care has the right to terminate the Franchise Agreement, but only after providing advance written notice of the default and allowing a 15-day period for the franchisee to correct the issue.