Under the Brain Balance franchise agreement, what law governs the agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Chimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website. | |
| 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 Wilming |
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, the franchise agreement is governed by Delaware law. However, this is subject to applicable state law. Any litigation must occur in a court located in New Castle County in the State of Delaware.
This means that the interpretation and enforcement of the franchise agreement will primarily be based on Delaware's legal principles. However, if there are specific state laws that conflict with Delaware law, those state laws may take precedence. This could be relevant if a franchisee's state has laws that provide greater protection to franchisees than Delaware law does.
For a prospective Brain Balance franchisee, it's important to understand the implications of Delaware law and how it might interact with the laws of their own state. Consulting with an attorney who is familiar with both franchise law and Delaware law is advisable to fully understand their rights and obligations under the franchise agreement.