Under the Brightstar Care franchise agreement, what monetary obligations are spouses or life-partners personally guaranteeing?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ion with the franchise.
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first written above.
FRANCHISOR (US): BRIGHTSTAR FRANCHISING, LLC FRANCHISEE (YOU): FRANCHISEE (YOU): By: Name: Title: FRANCHISEE (YOU): By: Name: Title: FRANCHISEE (YOU): By: Name: Title:
EXHIBIT E
PERSONAL GUARANTEE AND AGREEMENT TO BE BOUND PERSONALLY BY THE TERMS AND CONDITIONS OF THE FRANCHISE AGREEMENT
In consideration of, and as an inducement to, the execution of that certain Franchise Agreement (the "Agreement") on this date by BrightStar Franchising, LLC, an Illinois limited liability company ("Franchisor"), each of the undersigned personally and unconditionally (a) guarantees to Franchisor and its successors and assigns, for the term of the Agreement (including, without limitation, any extensions of its term) and afterward as provided in the Agreement, that _____________________________ ("Franchisee") will punctually pay and perform each and every undertaking, agreement, and covenant set forth in the Agreement (including, without limitation, any amendments or modifications of the Agreement) and (b) agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Agreement (including, without limitation, any amendments or modifications of
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, Exhibit E outlines the Personal Guarantee and Agreement to be Bound Personally by the Terms and Conditions of the Franchise Agreement. Spouses or life partners who sign this guarantee agree to ensure the franchisee punctually pays and performs every obligation, agreement, and covenant detailed in the Franchise Agreement. This obligation extends for the entire term of the agreement, including any extensions, and even after the agreement concludes, as specified within the agreement.
This guarantee means that the spouse or life partner is not only vouching for the franchisee's ability to adhere to the operational and brand standards of Brightstar Care, but also taking on personal liability for all financial responsibilities. This includes, but is not limited to, the initial franchise fee, ongoing royalty payments, marketing contributions, and any other fees or costs that the franchisee may incur during the term of the agreement. Furthermore, the spouse or life partner also agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Agreement, including (i) monetary obligations, (ii) obligations to take or refrain from taking specific actions and to engage or refrain from engaging in specific activities, including, but not limited to, the noncompetition, confidentiality, and transfer requirements, and (iii) the enforcement and other provisions in the Agreement, including the arbitration provision.
For a prospective Brightstar Care franchisee, this implies that their spouse or life partner must fully understand the financial and legal commitments of the franchise. It is crucial for both parties to carefully review the Franchise Agreement and the Personal Guarantee to fully grasp the extent of the obligations they are undertaking. Given the significant personal liability involved, it would be prudent to seek independent legal and financial advice before signing the agreement. This ensures that both the franchisee and their spouse or life partner are making an informed decision and are prepared for the potential risks and rewards of owning a Brightstar Care franchise.
In essence, the personal guarantee transforms the spouse or life partner into a co-obligor, making them equally responsible for the franchise's performance under the agreement. This is a standard practice in franchising, as it provides the franchisor with an additional layer of security and assurance that the franchisee will fulfill their obligations. However, it is a serious commitment that should not be taken lightly, as it can have significant financial and legal consequences for both the franchisee and their spouse or life partner.