Can a Brain Balance franchisee in North Dakota litigate with BB Franchising in any court?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The provisions of Item 17(v) of the Disclosure Document and Section 21.01 of the Franchise Agreement with regard to venue are hereby deleted and amended by the addition of the following language:
- The Franchisee is permitted to enter into litigation with BB FRANCHISING, the Franchisor, in any court within the county where the Franchised Business operates within the State of North Dakota.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a franchisee in North Dakota has specific rights regarding litigation. The standard franchise agreement is modified by a North Dakota addendum.
The addendum explicitly states that a Brain Balance franchisee is permitted to litigate with BB Franchising in any court within the county where their franchised business operates, provided it is within the State of North Dakota. This amendment overrides the standard agreement's venue provisions.
This is a significant benefit for franchisees in North Dakota, as it allows them to resolve disputes with Brain Balance in a local court, rather than being forced to travel to a distant location like California, which is often the case in franchise agreements. This can save the franchisee considerable time and money in legal proceedings.
Furthermore, the addendum also specifies that the Franchise Agreement will be construed and enforced under the laws of North Dakota, regardless of conflict of law rules. This ensures that North Dakota law will govern any disputes, providing additional protection and clarity for the franchisee.