Does the Brightstar Care Expansion Option Agreement have its own dispute resolution clause?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ttached to this disclosure document.
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| with your ownership, management, operation, maintenance of, engagement in, consulting with, or having any interest in any Competing Business. | ||
| s. Modification of agreement | 9 and 20.3 10 of Standard Renewal Addendum 12 of Expansion Option Agreement | The Franchise Agreement (and Expansion Option Agreement) may not be modified except by a written agreement that you and we sign. We can modify or change the BrightStar Care Agency Program through changes in the Operations Manual and you are bound by the same. |
| t. Integration/ merger clause | 24 12 of Expansion Option Agreement | Only the terms of the Franchise Agreement and other related written agreements (including the Expansion Option Agreement) are binding (subject to state law). Any representations or promises outside of the Franchise Agreement or this Disclosure Document may not be enforceable. |
| 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). |
| w. |
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 dispute resolution clause. Disputes, with certain exceptions, must initially be submitted to Brightstar Care's senior executives for internal resolution. If unresolved, the dispute proceeds to mediation, which will be held at Brightstar Care's offices.
The FDD specifies that mediation will follow the procedure outlined in the Franchise Agreement. Any disputes that remain unresolved after mediation will be settled through arbitration.
The arbitration proceedings must take place within 10 miles of Brightstar Care's principal business address at the time the arbitration demand is filed, which is currently in Bannockburn, Illinois. Litigation must be filed in the county and state where Brightstar Care's headquarters is located at the time of filing, which is currently Lake County, Illinois. Illinois law governs the Expansion Option Agreement, although these terms are subject to applicable state laws.
This means that prospective Brightstar Care franchisees entering into an Expansion Option Agreement are bound by a structured dispute resolution process that includes internal resolution, mediation, and potentially arbitration, with specific stipulations regarding location and governing law.