factual

Under what conditions can Brightstar Care or its agents inspect the agency premises?

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

13.8, that the Agency will operate under new management. We also have the right to inform them of other nearby BrightStar Agencies. Exercising these rights will not constitute interference with your contractual or business relationship with those clients.

  • 14.1.7 Immediately disclose to us and satisfy any outstanding obligations you have to any third parties.
  • 14.1.8 Immediately cease using in any manner whatsoever any methods, procedures, technology, or other component of the BrightStar Care Agency Program in which we have any right, title, or interest. We or our designated agent may enter upon the Premises at any time to make such changes and take possession of such items at your sole risk and expense and without liability to you for trespass or compensation.
  • 14.1.9 Immediately cease using the Licensed Marks and any other marks and indicia of operation associated with the BrightStar Care Agency Program, including stationary and other printed matter, and remove from the Premises all trade dress, physical characteristics, color combinations, and other indications of operation under the BrightStar Care Agency Program. Without limiting the generality of the foregoing, you agree that in the event of termination or expiration of this Agreement, you will remove all signage bearing the Licensed Marks and, upon our request, deliver the fascia for such signs to us. We or our designated agent may enter upon the Premises at any time to make such changes at your sole risk and expense and without liability to you for trespass or compensation.

14.2 Termination Damages

If we terminate this Agreement before its scheduled expiration date due to any of your defaults (including your abandonment of the Agency), or if you terminate this Agreement without cause before its scheduled expiration date (which also will be considered your default under this

Agreement), you must pay us within fifteen (15) days after the effective date of this Agreement's termination, in addition to the other amounts specified in Section 14.1.3 above, termination damages equal to the greater of either (a) $150,000 or (b) the product of the Agency's Net Billings during the 12 months before the effective date of termination multiplied by three and that product then multiplied by 5.25%. However, if the effective date of termination is during the last three years of the franchise term, the termination damages will equal the product of the Agency's Net Billings during the 12 months before the effective date of termination multiplied by x/12—where "x" is the number of months that were remaining in the franchise term on the effective date of termination—and that product then is multiplied by 5.25%.

We and you acknowledge and agree that it would be impracticable to determine precisely the damages we will incur as a result of this Agreement's early termination.

Source: Item 22 — CONTRACTS (FDD pages 117–118)

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care has specific rights regarding access to the franchisee's premises under certain conditions.

First, if the franchise agreement is terminated, Brightstar Care or its designated agent can enter the premises at any time to make changes and take possession of items related to the BrightStar Care Agency Program. This includes ceasing the use of methods, procedures, technology, or any component of the BrightStar Care Agency Program in which Brightstar Care has rights. This entry is at the franchisee's sole risk and expense, and Brightstar Care assumes no liability for trespass or compensation.

Second, Brightstar Care requires that the franchisee's lease agreement includes the right for Brightstar Care to enter the premises to make modifications necessary to protect the Licensed Marks. The lease must also include a "Collateral Assignment of Lease" that allows Brightstar Care to receive notice of default, cure the default, and assume the lease, including upon expiration or termination of the franchise agreement. Brightstar Care also has the right to sublease or assign the lease to another Brightstar Care franchisee and to acquire all fixtures, equipment, and leasehold improvements at fair market value if they exercise their rights under the Collateral Assignment of Lease.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.