According to the Belocal agreement, which state's laws govern the agreement?

According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement is governed by the laws of Texas. Specifically, the agreement will be construed and enforced in accordance with Texas law, without regard to its conflict of law principles. This means that if there are any legal disputes arising from the franchise agreement, Texas law will be used to interpret the contract and resolve the issues.

This is a standard clause in most franchise agreements, as it provides clarity and predictability regarding the legal framework that will govern the relationship between Belocal and its franchisees. However, it's important to note that this clause does not prevent a franchisee from bringing a claim against Belocal in their home state; it simply means that Texas law will be applied to the case.

For prospective Belocal franchisees, this clause means that they should familiarize themselves with Texas franchise law, or consult with an attorney who is knowledgeable in Texas law, to fully understand their rights and obligations under the franchise agreement. Furthermore, the FDD states that the franchisee submits to the jurisdiction of the state and federal district courts located in the state, county, or judicial district in which Belocal's principal place of business is located and waives all questions of personal jurisdiction or venue for the purpose of carrying out this provision.