Which state's law governs the Best Brains Franchise Agreement?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise agreement requires application of the laws of Illinois.
ILLINOIS ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the Illinois Franchise Disclosure Act, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
-
- Illinois law governs the Franchise Agreement.
-
- In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
RHODE ISLAND ADDENDUM TO THE DISCLOSURE DOCUMENT
Item 17.w. of the Disclosure Document is revised to provide:
Rhode Island law applies.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the franchise agreement generally requires application of Illinois law. However, this is subject to certain limitations and exceptions depending on the franchisee's location.
For instance, the FDD includes an Illinois addendum which states that Illinois law governs the Franchise Agreement. It also specifies that any clause designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside the state. This addendum also clarifies that franchisees cannot waive compliance with Illinois Franchise Disclosure Act or any other Illinois law.
Furthermore, the FDD includes addenda for other states such as California, Hawaii, Maryland, North Dakota, and Rhode Island, which stipulate that the terms of those addenda control if they are inconsistent with the general terms of the disclosure document. For example, the Rhode Island addendum states that Rhode Island law applies, and that franchisees cannot be restricted in choice of jurisdiction or venue. Therefore, prospective franchisees should carefully review the addendum specific to their state to understand which laws govern their franchise agreement.