Where does arbitration take place for Brightstar Care franchise disputes?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| u. Dispute resolution by arbitration or mediation | 15 14 of Expansion Option Agreement | Except for certain claims, all disputes must first be submitted to our senior executives for internal dispute resolution and, if not resolved, to a mediation hearing conducted according to the procedure stated in the Franchise Agreement. Mediation will be held at our offices. Disputes that cannot be resolved through mediationare resolved through arbitration. |
| v. Choice of forum | 15.7 14 of Expansion Option Agreement | All arbitration is to take place at a suitable location that is within 10 miles of where we have our principal business address when the arbitration demand is filed (currently Bannockburn, Illinois) (subject to state law). All litigation must be filed in the county and state where our headquarters is located at the time the action is filed (currently Lake County, Illinois) (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–92)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, arbitration typically occurs within 10 miles of Brightstar Care's principal business address at the time the arbitration demand is filed, which is currently Bannockburn, Illinois. This is subject to state law. Litigation must be filed in the county and state where Brightstar Care's headquarters is located at the time of the action, which is currently Lake County, Illinois, also subject to state law.
For prospective Brightstar Care franchisees, this means that if a dispute arises that cannot be resolved through mediation, they may be required to travel to the vicinity of Bannockburn, Illinois for arbitration proceedings. This could involve significant travel expenses and logistical challenges, depending on where the franchisee's business is located. The franchisee will also likely incur legal fees and other costs associated with the arbitration process.
However, there are exceptions to this rule for franchisees in certain states. For example, the FDD includes addenda for franchisees in Maryland, Minnesota, and North Dakota, which modify the standard dispute resolution terms. Specifically, Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Brightstar Care from requiring arbitration or litigation to be conducted outside Minnesota. Similarly, for North Dakota franchisees, to the extent required by the North Dakota Franchise Investment Law (unless such a requirement is preempted by the Federal Arbitration Act), arbitration proceedings will be held at a site to which Brightstar Care and the franchisee agree.
It is important for prospective franchisees to carefully review Item 17 of the FDD and any state-specific addenda to understand the dispute resolution process and their rights under the Franchise Agreement. Franchisees should also consult with an attorney to discuss the implications of these provisions and how they may be affected by the laws of their state.