Where is the American Arbitration Association located for Brain Balance franchise disputes?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement (or Satellite Franchise Agreement, if different) | Summary | |
|---|---|---|---|
| u. | Dispute Resolution by Arbitration or Mediation | 20 | Subject to applicable state law, except for certain claims, all disputes must be arbitrated before the American Arbitration Association located in Wilmington, Delaware. |
| v. | Choice of Forum | 21.01 | Subject to applicable state law, Arbitration under the Federal Arbitration Act at the American Arbitration Association in Wilmington, Delaware. * Litigation must be in any court located in New Castle County in the State of Delaware. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, disputes, with some exceptions, must be arbitrated before the American Arbitration Association located in Wilmington, Delaware. This is subject to applicable state law.
For a prospective Brain Balance franchisee, this means that if a dispute arises with the franchisor that cannot be resolved through other means, the franchisee may be required to participate in arbitration in Wilmington, Delaware. This location is significant because it may require the franchisee to travel to Delaware, potentially incurring travel and legal expenses.
It is also important to note that litigation, as opposed to arbitration, must occur in a court located in New Castle County in the State of Delaware. This further emphasizes Delaware as the primary legal venue for disputes related to the Brain Balance franchise agreement. Franchisees should consider these forum selection clauses carefully, as they can impact the cost and convenience of resolving disputes.