What dispute resolution methods are required before filing suit against Best Brains?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| performance may be required; and right of first refusal declined by us. (also see r below). | |||
| n. | Franchisor's right of first refusal to acquire franchisee's business | Section 9.D | We can match any offer for your business, except broker's fees are excluded. Cash may be substituted for any form of payment proposed. |
| o. | Franchisor's option to purchase franchisee's business | Section 7.F | Option to purchase some or all equipment, supplies, inventory, advertising materials and any items with our logo, for cash at fair market value, exercisable up to 90 days after termination or expiration. If no agreement on fair market value, an appraiser appointed by us will decide. |
| p. | Death or disability of franchisee | Section 9.E | You must assign franchise to an approved buyer within 5 months. All transfer provisions of Section 9 apply. |
| q. | Non-competition covenants during the term of the franchise | Section 8.A | May not offer services similar to those offered by a BEST BRAINS learning center. |
| r. | Non-competition covenants after the franchise is terminated or expires | Section 8.B. and 8.C | May not offer services similar to those offered by a BEST BRAINS learning center, or solicitation of past customers, for 2 years within 25 miles of your former learning center location or any other BEST BRAINS learning center. |
| s. | Modification of the agreement | Sections 5.H. and 12.C | Modification by written agreement signed by you and us. The Operations Manual is subject to change. |
| t. | Integration/merger clause | Section 12.C | Only the terms of the Franchise Agreement are binding (subject to state law). Any representations or promises outside of the disclosure document and franchise agreement may not be enforceable. |
| u. | Dispute resolution by arbitration or mediation | Section 10.I; Schedule 5 | You must first mediate any claims against us before filing suit. Arbitration only applies to Illinois franchisees and if specified in State Addenda to the Franchise Agreement. |
| v. | Choice of forum | Section 10.B | Suits must be in Illinois (subject to applicable state law). |
| w. | Choice of law | Section 109.A | Except for federal law, Illinois law applies (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 32–34)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees must first attempt mediation before filing a lawsuit against the company. Specifically, Item 17 outlines that mediation is a mandatory initial step for all franchisees. However, arbitration is only required for franchisees located in Illinois or if it's specified in the State Addenda to the Franchise Agreement.
This means that if a franchisee has a dispute with Best Brains, they cannot immediately proceed to court. Instead, they must engage in mediation, a process where a neutral third party helps facilitate a resolution between the franchisee and Best Brains. This can potentially save time and money compared to litigation, as mediation is often a less formal and less expensive process.
It is important for prospective franchisees to understand this dispute resolution process, as it will govern how any disagreements with Best Brains are handled. Franchisees should carefully review Section 10.I and Schedule 5 of the Franchise Agreement, as well as any State Addenda, to fully understand their rights and obligations regarding dispute resolution. Franchisees should also be aware that suits against Best Brains must be filed in Illinois, subject to applicable state law, and will be governed by Illinois law, except for federal law.