Upon termination, what must a Brightstar Care franchisee do regarding any outstanding obligations to third parties?

According to Brightstar Care's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee must immediately disclose to Brightstar Care and satisfy any outstanding obligations they have to third parties. This requirement is part of the franchisee's post-term obligations.

This means that if a Brightstar Care franchise is terminated, the franchisee is responsible for settling any debts, contracts, or other commitments they have made with external entities. This could include suppliers, landlords, service providers, or any other party with whom the franchisee has a business relationship. The franchisee must not only inform Brightstar Care of these obligations but also take the necessary steps to fulfill them.

This provision protects Brightstar Care from potential liabilities or reputational damage that could arise from a franchisee's unsettled obligations. It also ensures a clean break between the franchisee and the brand, preventing any lingering issues from affecting the ongoing operations of Brightstar Care or its other franchisees. Prospective franchisees should be aware of this requirement and ensure they have a plan for managing and resolving any outstanding obligations in the event of termination.