Where will arbitration take place for disputes related to the Brain Balance Franchise Agreement?
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. |
| w. | Choice of Law | 21.01 | Subject to applicable state law, Delaware. |
| x. | Statute of Limitations | 21.10 | Must commence any action relating to the Franchise Agreement, the relationship between you and us, or your operation of the Franchised Business within 1 year except for our rights under Section 7 of the Franchise Agreement (except in California). |
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 arising from the Franchise Agreement will be settled through arbitration. Subject to applicable state law, this arbitration will occur under the rules of the American Arbitration Association, and the location for these proceedings is Wilmington, Delaware. However, litigation must be in any court located in New Castle County in the State of Delaware. The Franchise Agreement is governed by Delaware law.
This means that if a Brain Balance franchisee has a disagreement with the franchisor that cannot be resolved informally, they will likely have to go through arbitration in Delaware. Arbitration generally involves presenting evidence and arguments to a neutral arbitrator who makes a binding decision. This process can be less formal and potentially less expensive than traditional litigation, but it still requires legal expertise and preparation.
It is important to note that this requirement may be subject to applicable state laws, which could provide different rules or protections for franchisees. Additionally, there are certain claims that may not be subject to arbitration, although the FDD does not specify what those claims are. Franchisees should consult with an attorney to understand their rights and obligations under the Franchise Agreement and applicable state laws. Any action relating to the Franchise Agreement must commence within 1 year except for Brain Balance's rights under Section 7 of the Franchise Agreement (except in California).