How are disputes resolved according 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 the 2025 Brain Balance Franchise Disclosure Document, dispute resolution between Brain Balance and its franchisees is addressed through arbitration or mediation. Subject to applicable state law and with the exception of certain claims, all disputes must be arbitrated before the American Arbitration Association, with the location for arbitration being Wilmington, Delaware.
The Franchise Agreement also specifies the choice of forum and choice of law. Subject to applicable state law, arbitration will occur under the Federal Arbitration Act at the American Arbitration Association in Wilmington, Delaware. Litigation must occur in any court located in New Castle County in the State of Delaware. The agreement is governed by Delaware law, again subject to applicable state law.
Finally, any action relating to the Franchise Agreement, the relationship between the franchisee and Brain Balance, or the operation of the franchised business must commence within 1 year. An exception to this statute of limitations exists for Brain Balance's rights under Section 7 of the Franchise Agreement, and another exception exists for disputes arising in California.