Where must litigation be filed against Brightstar Care?
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, 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. However, this is subject to state law, meaning that certain state laws may override this provision and require litigation to occur in the franchisee's state.
This requirement means that a Brightstar Care franchisee may have to travel to Lake County, Illinois, to pursue any legal claims against the franchisor. This could significantly increase the franchisee's legal costs, as they would need to pay for travel, accommodation, and potentially local legal representation. It also means that the franchisee would be subject to Illinois law, which may be different from the laws in their own state.
It is important to note that this requirement is subject to state law. Some states have franchise laws that may override this provision and require litigation to occur in the franchisee's state. For example, the FDD excerpts indicate that franchisees in Maryland, Minnesota, and North Dakota may have the right to bring certain actions in their own states, notwithstanding the general requirement to litigate in Illinois. Prospective franchisees should consult with an attorney to determine their rights in their specific state.
This type of clause is relatively common in franchise agreements, as it allows the franchisor to consolidate legal proceedings in a single location. However, it can create a significant disadvantage for franchisees, who may have limited resources to pursue legal claims in a distant jurisdiction. Franchisees should carefully consider this provision before signing a franchise agreement and should be aware of their rights under state law.