Are there any exceptions to the application of Illinois law to the Brightstar Care Franchise Agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| w. Choice of law | 22 14 of Expansion Option Agreement | Illinois law applies (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, while the Franchise Agreement generally defaults to Illinois law, there are exceptions based on the franchisee's location. Specifically, if a Brightstar Care franchise is offered or sold in New York, or if the franchisee resides or operates their agency in New York, the provisions of the New York General Business Law take precedence. This means that any part of the Franchise Agreement that clashes with New York law may not be enforceable.
Similarly, for franchisees in North Dakota, certain provisions are modified to comply with the North Dakota Franchise Investment Law. These modifications address issues such as non-compete covenants, termination or liquidated damages, arbitration proceedings, and the franchisee's right to bring action in North Dakota. Releases executed by North Dakota franchisees will not apply to claims arising under the North Dakota Franchise Investment Law to the extent prohibited by applicable law.
For franchisees in Maryland, the agreement is modified to ensure compliance with the Maryland Franchise Registration and Disclosure Law. This includes stipulations regarding releases, consent to jurisdiction, limitations of claims, and the application of Maryland law to claims arising under the Maryland Franchise Registration and Disclosure Law. Additionally, certain acknowledgments and clauses related to the franchisee's independent investigation are adjusted to protect rights under Maryland law. For franchisees in Minnesota, Brightstar Care 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.
These state-specific addenda highlight the importance of understanding the legal landscape in the franchisee's particular state and how it interacts with the standard Brightstar Care Franchise Agreement. Prospective franchisees should carefully review these addenda and consult with legal counsel to fully understand their rights and obligations.