Which state's law governs the Brightstar Care Franchise Agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| w. Choice of law | 22 14 of Expansion Option Agreement | Illinois law applies (subject to state law). |
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
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- GOVERNING LAW. The following sentence is added to the end of Section 22 of the Franchise Agreement:
However, to the extent required by applicable law, Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
- The following language is added at the end of Section 15.7 of the Franchise Agreement:
However, to the extent required by applicable law, but subject to Franchisee's arbitration obligations, Franchisee may bring an action in North Dakota.
Governing Law, Jurisdiction and Venue and Choice of Forum. The following statement is added to the cover page and Item 17:
Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400J prohibit the franchisor from requiring litigation
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- Any provision in the Franchise Agreement that is inconsistent with the New York General Business Law, Article 33, Section 680 - 695 may not be enforceable.
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- The following sentence is added to the end of Sections 2.2, 12.4.9, and 12.7:
Any provision in the Franchise Agreement requiring Franchisee to sign a general release of claims against Franchisor does not release any claim Franchisee may have under New York General Business Law, Article 33, Sections 680-695.
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, the franchise agreement is generally governed by Illinois law. However, this is subject to certain state laws. Specifically, Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law to the extent required by applicable law. Similarly, for franchisees in North Dakota, to the extent required by applicable law, but subject to the franchisee's arbitration obligations, the franchisee may bring an action in North Dakota.
For Brightstar Care franchisees in Minnesota, the FDD states that Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400J prohibit the franchisor from requiring litigation to be conducted outside of Minnesota. The disclosure document also states that nothing in the document or the franchise agreement can abrogate or reduce any of the licensee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
For franchisees operating in New York, any provision in the franchise agreement that is inconsistent with the New York General Business Law, Article 33, Section 680 - 695 may not be enforceable. Additionally, any provision requiring the franchisee to sign a general release of claims against the franchisor does not release any claim the franchisee may have under New York General Business Law, Article 33, Sections 680-695. These stipulations ensure that franchisees' rights are protected under their respective state laws, regardless of the general governing law specified in the franchise agreement.