What claims related to the Brain Balance franchise are exempt from the arbitration requirement?
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. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, disputes are generally resolved through arbitration before the American Arbitration Association in Wilmington, Delaware, subject to applicable state law. However, there are certain claims that are exempt from this arbitration requirement. The FDD does not specify which claims are exempt, only noting that the arbitration requirement is 'except for certain claims'.
For a prospective Brain Balance franchisee, this means that while most disputes will be handled through arbitration, there are undefined exceptions. It is important to understand what these exceptions are, as they could significantly impact how a franchisee can resolve conflicts with the franchisor.
To gain clarity, a prospective franchisee should ask Brain Balance to specify exactly which claims are not subject to arbitration. Understanding these exceptions is crucial for making an informed decision about investing in a Brain Balance franchise, as it affects the franchisee's legal rights and options in case of a dispute.