Does Brightstar Care use a standard renewal addendum to the franchise agreement, and if so, what exhibit is it?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
had, or chose to exercise, the right to terminate this Agreement during the Initial Term and regardless of your having satisfied the other renewal conditions specified in this Section 2.2.
As a condition of any renewal, you must:
- (1) sign our then-current form of franchise agreement for renewal franchises, which may include terms and conditions materially different from those in this Agreement, such as different performance standards, fee structures and/or increased fees;
- (2) if available, execute a new lease for a minimum of one year with an option to renew for two additional one-year terms for the Agency premises;
- (3) execute a general release in a form satisfactory to us of any and all claims against us, our parent, subsidiaries, and affiliates, and our and their officers, directors, attorneys, owners and employees;
- (4) complete any new training requirements not yet completed;
- (5) pay us a renewal fee in an amount equal to five thousand dollars ($5,000); and
- (6) at your sole expense and if necessary in our sole opinion, bring the Agency up to our then-current standards for an Agency, including installation or upgrade of computer hardware and software and the ABS.
- (b) If we choose to grant you a first five (5) year renewal franchise term as provided above, you will have the right to acquire a second and third (which will be the final) renewal franchise to continue operating the Franchised Business as a BrightStar Care Agency, the term of each of which will commence immediately upon the expiration of the immediately-preceding renewal franchise term and expire five (5) years from that date, but only if you have complied as of the end of the immediately-preceding renewal franchise term with the same conditions for a renewal franchise grant as those described above in this Se
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
Based on the 2025 Brightstar Care Franchise Disclosure Document, franchisees must sign the then-current form of the franchise agreement to renew their franchise. This new agreement may include terms and conditions that are materially different from the original agreement, such as different performance standards, fee structures, or increased fees.
To renew with Brightstar Care, a franchisee must also execute a new lease for the Agency premises for a minimum of one year, with an option to renew for two additional one-year terms, if available. Additionally, franchisees must execute a general release of claims against Brightstar Care and related parties, complete any new training requirements, pay a renewal fee of $5,000, and bring the Agency up to Brightstar Care's then-current standards, which may include upgrades to computer hardware and software.
Brightstar Care offers the option to grant a first five-year renewal franchise term, and franchisees have the right to acquire a second and third renewal franchise to continue operating as a Brightstar Care Agency. Each of these subsequent terms will also last five years, commencing immediately after the expiration of the preceding term. However, this is only possible if the franchisee has complied with all the conditions for renewal, as described in the franchise agreement.