Does the Brain Balance Franchise Agreement require binding arbitration?

According to the 2025 Brain Balance Franchise Disclosure Document, the Franchise Agreement does require binding arbitration. Specifically, for franchisees operating outlets in California, the arbitration will occur in Wilmington, Delaware, and each party will bear its own costs.

This means that any disputes arising from the franchise agreement would need to be settled through arbitration rather than through the court system. Arbitration typically involves presenting your case to a neutral arbitrator or panel of arbitrators, who will then make a decision that can be legally binding.

However, the FDD also notes that prospective franchisees are encouraged to consult with legal counsel to determine the applicability of California and federal laws to any provisions of a franchise agreement restricting venue to a forum outside the State of California. This suggests that while the agreement specifies arbitration in Delaware, there may be legal considerations that could affect the enforceability of this provision, particularly for franchisees in California. Franchisees in Washington should also note that in any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.