What is the maximum distance from Brightstar Care's principal business address for arbitration?
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, any arbitration is to take place within 10 miles of Brightstar Care's principal business address when the arbitration demand is filed. Currently, their principal business address is in Bannockburn, Illinois. This is subject to state law.
For a prospective franchisee, this means that if a dispute arises that leads to arbitration, the proceedings will be held relatively close to Brightstar Care's headquarters. This could increase costs for the franchisee, who may need to travel to Bannockburn, Illinois, regardless of where their franchise is located.
However, the FDD also notes exceptions for franchisees in certain states. For example, for franchisees in North Dakota, arbitration proceedings will be held at a site agreed upon by both parties, to the extent required by the North Dakota Franchise Investment Law (unless such a requirement is preempted by the Federal Arbitration Act). For franchisees in Minnesota, the FDD states that Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Brightstar Care from requiring arbitration or litigation to be conducted outside Minnesota.
It is important for prospective franchisees to understand the dispute resolution process and any potential costs associated with arbitration, including travel expenses and legal fees. Franchisees should also be aware of any state-specific laws that may affect the location of arbitration proceedings.