Under what condition related to the Collateral Assignment of Lease (Exhibit C) must a Brightstar Care franchisee immediately vacate the agency premises?

According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee must immediately vacate the agency premises if Brightstar Care exercises its rights under the Collateral Assignment of Lease, which is attached as Exhibit C to the franchise agreement. This condition is triggered upon the termination or expiration of the franchise agreement for any reason.

In practical terms, this means that if the franchise agreement ends, whether due to the franchisee's default or the natural expiration of the term, Brightstar Care has the right to step in and take over the lease of the agency premises. If Brightstar Care exercises this right, the franchisee must leave the premises immediately. This provision is tied to the Collateral Assignment of Lease, which is a separate agreement between the franchisee, the landlord, and Brightstar Care, giving Brightstar Care certain rights regarding the lease.

This requirement protects Brightstar Care's interests by ensuring that it can maintain control over the location of the franchise, which is crucial for maintaining brand consistency and operational standards. It also allows Brightstar Care to continue operating the business from that location, either directly or through another franchisee, without interruption. For a prospective franchisee, this highlights the importance of understanding the terms of the lease and the Collateral Assignment of Lease, as the franchisee could lose the right to operate from that location upon termination or expiration of the franchise agreement. It is also important to note that the franchisee must pay all outstanding debts to Brightstar Care, including royalties, marketing fees, and other amounts owed, upon termination of the agreement.