Under the Brightstar Care franchise agreement, does the acceptance of any payment from the franchisee constitute a waiver of any breach of any term, covenant, or condition of the agreement?

According to Brightstar Care's 2025 Franchise Disclosure Document, the acceptance of any payment from the franchisee does not constitute a waiver of any breach of the franchise agreement. Specifically, the FDD states that Brightstar Care's acceptance of payments from the franchisee will not be construed as a waiver of any breach of any term, covenant, or condition of the agreement. This means that Brightstar Care retains the right to enforce all terms of the agreement, even if they continue to accept payments from the franchisee, if a breach occurs.

This provision protects Brightstar Care by ensuring that they can continue to receive payments while still addressing any violations of the franchise agreement. For a prospective franchisee, this means that simply making payments does not excuse any non-compliance with other aspects of the agreement. Franchisees must adhere to all terms and conditions, regardless of whether Brightstar Care accepts their payments.

This type of clause is relatively common in franchise agreements. It allows the franchisor to maintain a business relationship while addressing any breaches, rather than being forced to immediately terminate the agreement upon the first sign of non-compliance. However, it also places the onus on the franchisee to ensure full compliance with all aspects of the agreement, as continued payment does not guarantee that breaches will be overlooked.