If mediation fails, where will arbitration proceedings for Brightstar Care be conducted?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
imposed by AAA and the mediator's fees. We reserve the right to specifically enforce our right to mediation. Prior to mediation and before commencing any legal action against us or our affiliates with respect to any such claim or dispute, you must submit a notice to us specifying in detail the precise nature and grounds of such claim or dispute.
15.3 Arbitration
If not resolved by mediation and except as qualified below, all controversies, disputes, or claims between us (and our affiliates and our and their respective owners, officers, directors, agents, and employees, as applicable) and you (and your affiliates and your and their respective owners, officers, and directors, as applicable) arising out of or related to:
(a) this Agreement or any other agreement between you (or your owner) and us (or our affiliate) relating to the Agency or any provision of any such agreements;
- (b) our relationship with you;
- (c) the validity of this Agreement or any other agreement between you (or your owner) and us (or our affiliate) relating to the Agency, or any provision of any such agreements, and the validity and scope of the arbitration obligation under this Section; or
- (d) any standard, specification, or operating procedure relating to the Agency,
must be submitted for arbitration to the American Arbitration Association.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, if mediation does not resolve disputes, arbitration proceedings will be conducted in Chicago, Illinois. This applies to any controversies, disputes, or claims arising out of or related to the franchise agreement or any other agreement between the franchisee (or their owner) and Brightstar Care (or its affiliate) relating to the Agency.
This means that if a Brightstar Care franchisee has a disagreement with the franchisor that cannot be resolved through mediation, the next step is arbitration, which will take place in Chicago, Illinois. This location is significant because it may require the franchisee to travel to Chicago, Illinois, incurring travel and legal expenses.
The FDD specifies that the arbitration will be administered by the American Arbitration Association (AAA) in accordance with its Commercial Arbitration Rules. The arbitration panel will consist of one arbitrator selected in accordance with AAA rules. The arbitrator is empowered to award reasonable attorneys’ fees and other costs to the substantially prevailing party, and the arbitrator’s decision will be final and binding, subject to limited appeal rights under the Federal Arbitration Act. This clause ensures that disputes are resolved through a structured and legally binding process, providing a degree of certainty for both parties.
It is important for prospective franchisees to consider the implications of this clause, including the potential costs and inconvenience of arbitrating disputes in Chicago, Illinois. Franchisees should also be aware of the arbitrator's power to award attorneys' fees and the limited appeal rights, which could impact the financial outcome of any dispute.