Upon termination or expiration of the Brightstar Care franchise agreement, will any monetary amount be assigned to me for goodwill associated with my use of the Licensed Marks?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You expressly acknowledge our and our affiliate's rights in and to the Licensed Marks and agree not to represent in any manner that you have acquired any ownership rights in the Licensed Marks. You may not use any of the Licensed Marks or any marks, names or indicia which are or may be confusingly similar in your own corporate or business name, e-mail address, or domain name except as authorized in this Agreement. You further acknowledge and agree that any and all goodwill associated with the BrightStar Care Agency Program and identified by the Licensed Marks will inure directly and exclusively to our and our affiliate's benefit and that, upon the termination or expiration of this Agreement for any reason, no monetary amount will be assigned as attributable to any goodwill associated with your use of the Licensed Marks.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees will not receive any monetary compensation for goodwill associated with their use of Brightstar Care's licensed marks upon termination or expiration of the franchise agreement. The FDD states that all goodwill associated with the Brightstar Care Agency Program and identified by the licensed marks inures directly and exclusively to the benefit of Brightstar Care and its affiliates.
This means that any value built up in the Brightstar Care business related to brand recognition and reputation through the use of Brightstar Care's trademarks belongs solely to Brightstar Care. Franchisees cannot claim or assign any monetary value to this goodwill when the franchise agreement ends. This is a standard practice in franchising, as the brand and its associated goodwill are considered the intellectual property of the franchisor.
For a prospective Brightstar Care franchisee, this condition highlights the importance of understanding that the value created through brand recognition ultimately benefits the franchisor. While franchisees benefit from using the established brand during the term of the agreement, they should not expect to be compensated for any goodwill they helped create when the agreement terminates or expires. This is a crucial consideration for the franchisee's long-term financial planning and exit strategy.