Under what conditions might Brightstar Care establish a franchisee's Monthly Performance Standard requirements based on the historical performance of the agency being acquired?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
usiness model. If you acquired the Agency as a result of a transfer, the Minimum Start Date will be the effective date of the transfe
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, if a franchisee acquires an existing Brightstar Care agency through a transfer, the Minimum Start Date (MSD) for performance standards will be the effective date of the transfer. This means that the franchisee's performance will be evaluated starting from the moment the transfer is complete.
Brightstar Care's standard Monthly Performance Standards typically begin twelve months after the Minimum Start Date, which is defined as the earlier of the date of the first billing or 180 days after signing the agreement. However, in the case of a transfer, the MSD is the transfer's effective date, which changes the timeline for when the franchisee must meet the Monthly Performance Standards.
This condition is important for prospective franchisees to understand, as acquiring an existing agency means they are immediately responsible for meeting performance standards based on the agency's existing operations. This differs from starting a new Brightstar Care agency, where there is a grace period to establish the business before performance standards are applied. The franchisee should carefully evaluate the historical performance of the agency being acquired to understand the existing baseline and the challenges and opportunities that come with it.