Where must all litigation be filed for disputes involving Brightstar Care?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD 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). |
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. This is subject to state law. This means that if a franchisee has a legal dispute with Brightstar Care that cannot be resolved through other means such as mediation or arbitration, the franchisee will likely need to pursue the matter in the Illinois court system.
This requirement could create additional expenses and logistical challenges for franchisees who do not reside in Illinois. They would need to hire legal counsel familiar with Illinois law and potentially travel to Illinois for court proceedings. The FDD also mentions that Illinois law applies to the franchise agreement, which means that Illinois courts will interpret the agreement based on Illinois legal precedents.
However, certain states such as Maryland and North Dakota have specific addenda that may modify this requirement, allowing franchisees to bring actions in their own states for claims arising under their state's franchise laws. For example, the Maryland addendum states that a franchisee may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, subject to arbitration obligations. Similarly, the North Dakota addendum allows franchisees to bring an action in North Dakota to the extent required by applicable law, but subject to the franchisee's arbitration obligations.
Prospective franchisees should carefully review the choice of forum and choice of law provisions in the franchise agreement and any state-specific addenda to understand their rights and obligations regarding dispute resolution. It is also advisable to consult with an attorney to assess the potential implications of these provisions, especially if the franchisee resides outside of Illinois.