What 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). |
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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.
Notice of Termination. The following statement is added to Item 17:
With respect to franchises governed by Minnesota law, BrightStar Franchising, LLC will comply with Minnesota Statute § 80C.14, subdivisions 3, 4, and 5 which requires, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement.
- 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.
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. For instance, 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 Minnesota, the agreement adheres to Minnesota Statute § 80C.14, subdivisions 3, 4, and 5, regarding termination and non-renewal notices. For franchisees in North Dakota, to the extent required by applicable law, but subject to Franchisee's arbitration obligations, Franchisee may bring an action in North Dakota.
This means that while Illinois law forms the baseline for the agreement, specific provisions may be overridden or supplemented by the franchise laws of the state in which the franchisee resides or where the Brightstar Care agency is located. This ensures that franchisees receive the protections afforded to them by their local state laws, particularly concerning franchise registration, disclosure, termination rights, and dispute resolution.
For a prospective Brightstar Care franchisee, this indicates the importance of understanding not only the standard franchise agreement but also any state-specific addenda or modifications. Franchisees should consult with legal counsel to fully grasp how the laws of their state interact with the franchise agreement, especially concerning dispute resolution, termination, and renewal rights. This is particularly crucial in states like Maryland, Minnesota, and North Dakota, where specific statutes are referenced as taking precedence over certain aspects of the standard agreement.