Under what condition will the Brightstar Care Franchise Agreement and Addendum be automatically and immediately terminated?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
cquire a second or third (which will be the final), as applicable, renewal franchise term.
You have no right to acquire a second or third renewal franchise if these conditions are not satisfied. The then-current form of franchise agreement that you will sign for the second or third renewal franchise may include terms and conditions materially different from those in the franchise agreement you sign for the immediately-preceding renewal franchise, such as different fee structures and/or increased fees. The franchise agreement for the third (and final) renewal franchise will be modified to reflect that no further renewal franchises will be granted.
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- Termination. You agree and acknowledge that this Medium Density Territory is related to and dependent upon the continued operation of your Primary Agency. Accordingly, termination or expiration of your Primary Franchise Agreement will result in the automatic and immediate termination of the Franchise Agreement and this Addendum.
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- Voluntary Nature of Addendum.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to the 2025 Brightstar Care Franchise Disclosure Document, the Franchise Agreement and its addendum can be automatically and immediately terminated under specific conditions. If a Brightstar Care franchisee operates in a Medium Density Market Territory, the termination or expiration of their Primary Franchise Agreement will result in the automatic and immediate termination of the Franchise Agreement and its addendum related to the Medium Density Territory.
Additionally, the Brightstar Care agreement and the expansion option rights it grants are not assignable under any circumstances. Any attempted assignment of the agreement and the expansion option rights, directly or indirectly, will be considered void and will lead to the automatic and immediate termination of the agreement without any further notice or action required from Brightstar Care.
Upon such termination, the franchisee will lose the option to acquire the right to open and operate an additional Brightstar Care Agency in the Expansion Territory, and the Expansion Option Fee is non-refundable under any circumstances. This highlights the importance of adhering to the terms of the agreement and understanding the implications of any actions that could lead to termination.