If litigation is required for a Brain Balance franchise dispute, in which court must it occur?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement (or Satellite Franchise Agreement, if different) | Summary | |
|---|---|---|---|
| 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. |
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, any litigation regarding a franchise dispute must occur in a court located in New Castle County in the State of Delaware. This stipulation is subject to applicable state law.
This means that if a Brain Balance franchisee has a legal dispute with the franchisor that cannot be resolved through arbitration or mediation, the lawsuit must be filed in a specific county and state. This requirement applies regardless of where the franchisee's business is located, which could create additional expenses and logistical challenges for franchisees who do not reside in Delaware.
It is important for prospective Brain Balance franchisees to understand this forum selection clause, as it dictates where they can bring a lawsuit against the franchisor. Franchisees should consider the potential costs and inconveniences associated with litigating in Delaware before investing in a Brain Balance franchise. They should seek legal counsel to fully understand the implications of this clause.