Is there a geographic limit to the laws or jurisdictions that apply to the disclosure requirements for Best Brains?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise agreement requires application of the laws of Illinois. This provision may not be
enforceable under California law.
The franchise agreement contains a covenant not to compete which extends beyond the termination of the franchise. This provision may not be enforceable under California law.
SECTION 31125 OF THE FRANCHISE INVESTMENT LAW REQUIRES US TO GIVE TO YOU A DISCLOSURE DOCUMENT APPROVED BY THE COMMISSIONER OF FINANCIAL PROTECTION AND INNOVATION BEFORE WE ASK YOU TO CONSIDER A MATERIAL MODIFICATION OF YOUR FRANCHISE AGREEMENT.
YOU MUST SIGN A RELEASE OF CLAIM IF YOU RENEW OR TRANSFER YOUR FRANCHISE. CALIFORNIA CORPORATIONS CODE §31512 VOIDS A WAIVER OF YOUR RIGHTS UNDER THE FRANCHISE INVESTMENT LAW (CALIFORNIA CODE §§31000 THROUGH 31516). BUSINESS AND PROFESSIONS CODE §20010 VOIDS A WAIVER OF YOUR RIGHTS UNDER THE FRANCHISE RELATIONS ACT (BUSINESS AND PROFESSIONS CODE §§20000 THROUGH 20043).
Our websites are located at www.BestBrains.com and www.BestBrainsFranchise.com
OUR WEBSITE HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT www.dfpi.ca.gov.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
The registration of this franchise offering by the California Department of and Innovation does not constitute approval, recommendation, or endorsement by the commissioner.
HAWAII ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the Hawaii Franchise Investment Law, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the disclosure requirements are subject to geographic limitations, as evidenced by addenda for specific states that supersede the general terms of the document. For instance, the franchise agreement requires application of the laws of Illinois, but this may not be enforceable under California law. Additionally, the FDD includes addenda for California, Hawaii, Maryland, Minnesota, and North Dakota, indicating that the franchise laws of these states may take precedence over the standard terms of the Best Brains franchise agreement in those jurisdictions.
For prospective franchisees, this means that the specific terms and conditions of their franchise agreement, as well as their rights and obligations, can vary significantly depending on the state in which they operate their Best Brains center. The FDD explicitly states that if any terms of the Disclosure Document are inconsistent with the terms in the state-specific addenda, the terms in the addenda will control. This highlights the importance of carefully reviewing the addendum applicable to their state to understand the nuances of franchise law in their area.
For example, the North Dakota addendum states that North Dakota law will govern the franchise agreement, and that certain waivers related to jury trials and punitive damages will not apply to North Dakota franchisees. Similarly, the Maryland addendum modifies certain provisions related to releases and lawsuits under the Maryland Franchise Registration and Disclosure Law. The Minnesota addendum prohibits Best Brains from requiring litigation outside of Minnesota and protects the franchisee's rights to use trademarks. These state-specific provisions demonstrate that the legal landscape for Best Brains franchisees is not uniform across all locations and is tailored to comply with local franchise laws.
Therefore, it is crucial for potential Best Brains franchisees to consult with a legal professional who is knowledgeable about franchise law in their specific state to fully understand their rights and obligations. This will help ensure they are aware of any state-specific protections or limitations that may apply to their franchise agreement and relationship with Best Brains.