Are there any exceptions to the one-year statute of limitations for Brain Balance franchise disputes?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement (or Satellite Franchise Agreement, if different) | Summary | |
|---|---|---|---|
| u. | Dispute Resolution by Arbitration or Mediation | 20 | Subject to applicable state law, except for certain claims, all disputes must be arbitrated before the American Arbitration Association located in Wilmington, Delaware. |
| 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. |
| w. | Choice of Law | 21.01 | Subject to applicable state law, Delaware. |
| x. | Statute of Limitations | 21.10 | Must commence any action relating to the Franchise Agreement, the relationship between you and us, or your operation of the Franchised Business within 1 year except for our rights under Section 7 of the Franchise Agreement (except in California). |
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, there is generally a one-year statute of limitations for actions relating to the Franchise Agreement. This means a franchisee must commence any legal action against Brain Balance within one year of the event giving rise to the claim.
However, there is an exception to this one-year limitation. Brain Balance retains its rights under Section 7 of the Franchise Agreement, which are not subject to the one-year statute of limitations, except in California. This means that Brain Balance may pursue certain claims against a franchisee even after the one-year period has expired, unless the franchise is located in California.
This is an important consideration for prospective Brain Balance franchisees. It means that while franchisees have a limited time to bring claims against Brain Balance, Brain Balance has more leeway to pursue claims against franchisees, depending on the specific claim and whether the franchise is located in California. Franchisees should carefully review Section 7 of the Franchise Agreement to understand the types of claims that are not subject to the one-year statute of limitations.