Under what conditions will the Brightstar Care Agency's Franchise Agreement automatically terminate or expire?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
have no right to acquire 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. You acknowledge and agree that it has entered into this Addendum freely and without any coercion.
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- Entire Agreement.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the Franchise Agreement can automatically terminate under specific conditions related to addenda and expansion options. If a franchisee enters into a Medium Density Territory Addendum, the termination or expiration of the Primary Franchise Agreement will result in the automatic and immediate termination of both the Franchise Agreement and the addendum. Similarly, if a franchisee's agreement for an expansion territory is terminated or expires, any addendum related to that expansion will also automatically terminate.
Additionally, the agreement for an expansion option will automatically terminate if the franchisee attempts to assign the agreement or the expansion option rights. This termination occurs immediately without any further notice from Brightstar Care. In such a case, the franchisee will lose the option to open and operate an additional Brightstar Care Agency in the Expansion Territory and will not receive a refund of the Expansion Option Fee.
These conditions highlight the importance of maintaining the primary franchise agreement and adhering to the terms of any addenda or expansion options. Prospective franchisees should carefully consider these factors and ensure they understand the implications of any actions that could lead to automatic termination, especially concerning expansion territories and the non-refundable nature of the Expansion Option Fee.