Where must all mediation, arbitration, and litigation take place for Body Brain Center disputes?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 9.1. Dispute Resolution. Unless otherwise prescribed by law, the Parties agree to submit
any claim, dispute or disagreement of any type whatsoever that arises out of, or relates in any way to, this Agreement or the relationship between the Parties ("Dispute") to mediation before a mediator that the Parties will have selected jointly prior to arbitration. If the Dispute cannot be resolved by mediation, the Dispute will be submitted to mandatory and binding arbitration conducted pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The arbitrators will not have authority to award exemplary or punitive damages. The arbitrators shall adhere to the terms of this Agreement and shall have no power to add to or modify said terms. All mediation, arbitration and litigation shall take place in the State of Arizona. If this Agreement must be enforced in a judicial or arbitration proceeding, the substantially prevailing Party will be entitled to reimbursement of its costs and expenses, including reasonable accounting and legal fees. Unless Prohibited by applicable law, any Dispute must be brought by filing a written demand for arbitration (or if permitted, litigation) within one (1) year following the conduct, act or other event or occurrence giving rise to the claim or the right to any remedy will be deemed forever waived and barred. The Parties irrevocably waive: (i) trial by jury; and (ii) the right to arbitrate or ligate on a class action or any other representative basis, in any action, proceeding or counterclaim, whether at law or in equity.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, any claim, dispute, or disagreement related to the Franchise Agreement or the relationship between the parties must undergo mediation before arbitration. If mediation fails, the dispute will proceed to mandatory and binding arbitration under the Commercial Arbitration Rules of the American Arbitration Association. The arbitrators are not authorized to award exemplary or punitive damages and must adhere to the agreement's terms without modification. All mediation, arbitration, and litigation must occur in the State of Arizona.
This means that if a Body Brain Center franchisee has a dispute with the franchisor, they must first attempt to resolve it through mediation. If mediation is unsuccessful, the dispute will be settled through arbitration, which is a more formal process than mediation but less formal than a court trial. The location for all these proceedings is fixed in Arizona, regardless of where the franchisee's Body Brain Center is located. This could create additional expenses for travel and legal representation for franchisees located outside of Arizona.
Furthermore, the FDD states that if legal action or arbitration is necessary to enforce the agreement, the prevailing party is entitled to reimbursement of costs and expenses, including reasonable accounting and legal fees. Any dispute must be initiated within one year of the event giving rise to the claim; otherwise, the right to any remedy is waived. Both parties also waive their rights to a jury trial and to participate in class action lawsuits.
This dispute resolution process is fairly typical in franchising, where arbitration is often favored for its efficiency and cost-effectiveness compared to litigation. However, the requirement to mediate, arbitrate, and litigate in Arizona could pose a logistical and financial burden for franchisees operating centers in other states. The one-year limitation for bringing claims is also a relatively short period, requiring franchisees to act quickly if they believe they have a dispute.