Under what conditions will the Lessor recognize Brightstar Care as the tenant under the lease?

According to Brightstar Care's 2025 Franchise Disclosure Document, the Lessor will recognize the Assignee (Brightstar Care) as the tenant under the lease if Brightstar Care takes possession of the premises and confirms the assumption of the lease. This is contingent upon Brightstar Care curing any defaults of the Assignor (the original franchisee) under the lease within a 30-day period.

This provision is part of a broader agreement where the Lessor consents to a Collateral Assignment, giving Brightstar Care certain rights and obligations related to the lease. Specifically, the Lessor agrees to notify Brightstar Care of any defaults by the original franchisee (Assignor) and allows Brightstar Care the right, but not the obligation, to cure these defaults within 30 days of receiving notice.

Furthermore, Brightstar Care has the right to further assign the lease or sublet the premises to another BrightStar Care franchisee who is reasonably acceptable to the Lessor. In the event of such an assignment, Brightstar Care will have no further liability under the lease. This consent agreement remains applicable to any subsequent Brightstar Care franchisee in case of assignment or sublease.

This arrangement protects Brightstar Care's interests by ensuring the continuity of the business at the location, even if the original franchisee defaults. It also provides flexibility for Brightstar Care to transfer the lease to another franchisee, subject to the Lessor's approval, which is a common practice in franchising to maintain brand presence and operational stability.