Does the Best Brains franchise agreement require claims to be brought in court or arbitration?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
n order to prevent any interruption of the Franchised Business and to protect the goodwill associated with the Marks and System, if you die or become disabled so you are not able to operate or oversee the operation of the Franchised Business on a regular basis, we may operate the Franchised Business on your behalf for so long as we deem necessary under the circumstances. All revenues received from the operation of the Franchised Business during such period of operation by us shall be kept in a separate account and the expenses of the Franchised Business including, without limitation, reasonable compensation and expenses of the Company and its agents and employees in operating the Franchised Business, shall be charged to such account. You agree to defend, indemnify and hold harmless the Company and its agents and employees who may act hereunder.
10. GOVERNING LAW.
A. Choice of Law. This Agreement is effective upon its acceptance in Illinois by our authorized officer., Illinois law governs all claims that in any way relate to or arise out of this Agreement or any of the dealings of the parties ("Claims"). However, no laws regulating the sale of franchises or governing the relationship between franchisor and franchisee shall apply unless the jurisdictional requirements of such laws are met independently of this paragraph.
- B. Jurisdiction and Venue. In any suit over any Claims, venue shall be proper solely in the state and federal court nearest to our corporate headquarters, presently located in Cook County, Illinois. However, if you are an Illinois resident or your franchise territory is located in Illinois, you agree to bring any Claims, if at all, solely in arbitration before the American Arbitration Association in the city or county where our corporate headquarters are located.
- C. Jury Waiver. In any trial of any Claims, you and we agree to waive our rights to a jury trial and instead have such action tried by a judge.
- **D.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, the franchise agreement specifies how and where claims must be addressed. For most franchisees, any suit over claims related to the agreement must be brought in the state or federal court nearest to Best Brains' corporate headquarters, which is located in Cook County, Illinois. Franchisees also waive their rights to a jury trial. They must bring claims individually, waiving the right to participate in a class action against Best Brains. Franchisees also waive the right to seek or recover punitive damages. Any claims must be brought within one year of the occurrence.
However, there is an exception for franchisees who are Illinois residents or whose franchise territory is in Illinois. These franchisees must bring any claims solely in arbitration before the American Arbitration Association in the city or county where Best Brains' corporate headquarters are located.
Furthermore, the FDD includes addenda for franchisees in North Dakota, Maryland, and Minnesota, which modify the standard terms of the franchise agreement. The North Dakota addendum states that franchisees must bring any claim against Best Brains in arbitration before the American Arbitration Association. The Minnesota addendum states that the franchisor cannot require litigation to be conducted outside Minnesota or require waiver of a jury trial. Therefore, prospective franchisees should carefully review the governing law and dispute resolution sections of the franchise agreement and any state-specific addenda to understand their rights and obligations.