factual

Where must any legal action pertaining to the Brain Balance agreement be brought?

Q: Where must any legal action pertaining to the Brain Balance agreement be brought?

- 6. This Agreement will be interpreted and enforced under California law without regard to the conflict of law rules thereof. If a court finds any part of this Agreement invalid, the rest of it will be enforced to the extent permitted. Any legal action or proceeding brought with respect to this Agreement may be brought only in the courts of the State of California, and by my signature below, I consent to the personal jurisdiction of such courts. Source: Item 23 — RECEIPTS (FDD pages 72–292)

Brain_Balance Franchise · 2025 FDD

Answer from 2025 FDD Document

1. This Agreement will be interpreted and enforced under California law without regard to the conflict of law rules thereof. If a court finds any part of this Agreement invalid, the rest of it will be enforced to the extent permitted. Any legal action or proceeding brought with respect to this Agreement may be brought only in the courts of the State of California, and by my signature below, I consent to the personal jurisdiction of such courts.

Source: Item 23 — RECEIPTS (FDD pages 72–292)

What This Means (2025 FDD)

According to Brain Balance's 2025 Franchise Disclosure Document, any legal action or proceeding regarding the franchise agreement must be initiated in the courts of the State of California. This means that regardless of where the franchisee's Brain Balance center is located, they will likely need to travel to California to resolve any legal disputes with the franchisor.

This requirement is significant for prospective Brain Balance franchisees as it dictates the legal venue and governing law for any disputes. Franchisees must consent to the personal jurisdiction of California courts, which could add considerable expense and inconvenience if a lawsuit arises. It is common for franchise agreements to specify a particular jurisdiction for legal proceedings, but franchisees should carefully consider the implications of this clause, especially if they reside far from the designated state.

The FDD also states that the agreement will be interpreted and enforced under California law, without regard to its conflict of law rules. This means California law will govern the interpretation of the franchise agreement, which may differ from the laws in the franchisee's state. Franchisees should consult with legal counsel to understand the implications of both the venue and governing law provisions in the Brain Balance franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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