In the Brain Balance agreement, where must any legal action pertaining to the agreement be brought?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- This Agreement will be interpreted and enforced under California law without regard to the conflict of law rules thereof. If a court finds any part of this Agreement invalid, the rest of it will be enforced to the extent permitted. Any legal action or proceeding brought with respect to this Agreement may be brought only in the courts of the State of California, and by my signature below, I consent to the personal jurisdiction of such courts.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, any legal action or proceeding brought with respect to the franchise agreement must be brought in the courts of the State of California. By signing the agreement, the franchisee consents to the personal jurisdiction of those courts.
This means that if a Brain Balance franchisee has a legal dispute with the franchisor related to the franchise agreement, the franchisee will likely need to pursue the case in California, regardless of where the franchisee's center is located. This could involve significant travel expenses and the need to hire legal counsel familiar with California law.
This requirement is a fairly common practice in franchising, as franchisors often prefer to have disputes resolved in a location convenient for them. Prospective Brain Balance franchisees should consider this factor and its potential costs when evaluating the franchise opportunity. It is advisable to consult with a legal professional to fully understand the implications of this clause before signing the franchise agreement.