factual

What is the Best Brains franchisee required to do regarding claims against the franchisor?

Best_Brains Franchise · 2025 FDD

Answer from 2025 FDD Document

Landlord and the Franchisor may rely upon any notice from either of them regarding the status of the Lease or of the Franchise Agreement; they shall have no duty to perform any independent investigation to verify the Franchisee's rights under the Lease or the Franchise Agreement; and, the Franchisee agrees to indemnify and hold the Franchisor (and its affiliates and company with which the Franchisor may merge or consolidate) harmless from any and all claims, expenses and attorneys' fees

arising out of the Lease and the reliance upon the Franchisor's or Landlord's representations regarding the Franchisee's status, the status of the Franchisor or the status of the Franchise Agreement.

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.

Class Action Waiver.** You agree that any Claims you may have against us, including our past and present employees and agents, shall be brought individually and you shall not join with claims of any other person or entity or bring, join or participate in a class action against us.

  • **E.

Punitive Damages Waiver.** In any lawsuit, dispute, or claim over any Claims, you and we agree to waive our rights, if any, to seek or recover punitive damages.

  • **F.

Limitation of Actions.** You agree to bring any Claims against us, if at all, within one (1) year of the occurrence of the facts giving rise to such Claims.

Any action not brought within this period shall be barred as a claim, counterclaim, defense, or set-off.

Source: Item 23 — RECEIPTS (FDD pages 42–190)

What This Means (2025 FDD)

According to the 2025 Best Brains Franchise Disclosure Document, franchisees are subject to certain conditions regarding claims against Best Brains. Specifically, the franchisee agrees to indemnify and hold Best Brains (and its affiliates and company with which Best Brains may merge or consolidate) harmless from any and all claims, expenses, and attorneys' fees arising out of the lease and the reliance upon Best Brains' or the landlord's representations regarding the franchisee's status, the status of Best Brains, or the status of the Franchise Agreement. This means a franchisee could be responsible for covering Best Brains' legal costs in certain situations.

Additionally, the Franchise Agreement includes clauses about governing law, jurisdiction, and waivers. Illinois law governs all claims related to the agreement. The franchisee agrees that venue for any suit shall be in the state and federal court nearest Best Brains' corporate headquarters in Cook County, Illinois. However, if the franchisee is an Illinois resident or their franchise territory is in Illinois, they agree to 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 franchisee waives their rights to a jury trial, agrees to bring claims individually (waiving class action rights), and waives the right to seek or recover punitive damages. The franchisee must bring any claims against Best Brains within one year of the occurrence of the facts giving rise to such claims; any action not brought within this period is barred. These provisions significantly limit the franchisee's ability to pursue legal action against Best Brains and impact the legal avenues available to them.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.