Under the Brightstar Care Microsoft agreement, what constitutes a 'master franchisee'?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
"master franchisee" means any person or entity that has entered into or hereafter enters into one or more agreements with you or any of your affiliates pursuant to which such person or entity has rights to grant one or more third parties franchises or related rights relating to any franchise system or concept offered at any time by you or any of your affiliates, which franchise system or concept includes use of a trade name containing the term "BrightStar" or "Bright Star"; provided, that a person or entity will cease to be a "master franchisee" hereunder upon the expiration or termination of substantially all of such rights to grant franchises or related rights under such agreement(s);"
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a 'master franchisee' within the context of the Microsoft agreement is defined as an entity that has agreements with Brightstar Care (or its affiliates) granting them the right to award franchises or related rights to third parties. These franchises must be related to a franchise system or concept offered by Brightstar Care, and this system must involve the use of a trade name containing "BrightStar" or "Bright Star."
However, the definition includes a condition: an entity will no longer be considered a master franchisee if substantially all of their rights to grant franchises or related rights under their agreement(s) have expired or been terminated. This implies that the status of 'master franchisee' is contingent on the active ability to grant franchises within the Brightstar Care system.
This definition is important because it clarifies the roles and responsibilities within the Brightstar Care franchise network, especially concerning the Microsoft Dynamics GP Software agreement. Master franchisees have specific obligations and rights related to the software, and understanding this definition is crucial for anyone considering becoming a master franchisee or interacting with one within the Brightstar Care system.