Does the Brightstar Care Expansion Option Agreement have its own choice of forum clause?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| 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, the Expansion Option Agreement does contain its own choice of forum clause. Specifically, all litigation must be filed in the county and state where Brightstar Care's headquarters is located at the time the action is filed, which is currently Lake County, Illinois. This is subject to state law.
In the event of arbitration, it is to take place at a suitable location within 10 miles of Brightstar Care's principal business address when the arbitration demand is filed, which is currently Bannockburn, Illinois. This too is subject to state law.
This means that if a Brightstar Care franchisee enters into an Expansion Option Agreement and a dispute arises that leads to litigation, they will likely have to pursue that litigation in Lake County, Illinois, regardless of where their franchise is located. Similarly, arbitration would occur near Brightstar Care's headquarters. This could create additional expenses for travel and legal representation for a franchisee who does not reside near the designated forum. Franchisees should consult with a legal professional to understand the implications of these clauses within the Expansion Option Agreement.