For Brightstar Care franchise disputes, what happens if mediation does not resolve the issue?
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). |
| w. Choice of law | 22 14 of Expansion Option Agreement | Illinois law applies (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, disputes that cannot be resolved through mediation are resolved through arbitration. Prior to mediation, all disputes must first be submitted to Brightstar Care's senior executives for internal dispute resolution.
The FDD specifies that all arbitration is to take place at a suitable location that is within 10 miles of where Brightstar Care has its principal business address when the arbitration demand is filed, which is currently Bannockburn, Illinois. However, this is subject to state law.
For prospective Brightstar Care franchisees, this means that if a dispute arises with the franchisor that cannot be resolved through initial internal processes or mediation, the next step is arbitration. Franchisees should be aware of the location and potential costs associated with arbitration, as well as the fact that Illinois law applies to dispute resolution.