factual

What specific section of the Brain Balance Franchise Agreement contains statute of limitations language that may be unenforceable in California?

Brain_Balance Franchise · 2025 FDD

Answer from 2025 FDD Document

The statute of limitations language in Section 21.20 of the Franchise Agreement may be unenforceable in California.

California Corporations Code Section 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporation Code Section 31000 through 31516.

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

What This Means (2025 FDD)

According to Brain Balance's 2025 Franchise Disclosure Document, Section 21.20 of the Franchise Agreement includes statute of limitations language that may not be enforceable in California. This is because California Corporations Code Section 31512 voids any waiver of rights under the Franchise Investment Law (California Corporation Code Sections 31000 through 31516).

In practical terms, this means that if a Brain Balance franchisee in California has a claim under the California Franchise Investment Law, the statute of limitations outlined in Section 21.20 of the Franchise Agreement might not be upheld by California courts. This could potentially give franchisees more time to bring a claim than the agreement initially stipulates.

Prospective Brain Balance franchisees in California should be aware of this provision and consult with legal counsel to understand their rights under California law. It is important to note that California franchise law aims to protect franchisees, and this specific clause ensures that franchisees do not unknowingly waive their rights through contractual language.

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.