In the Belocal agreement, in which courts can Franchisor bring an action that includes injunctive relief?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTWITHSTANDING THE ABOVE, WITH RESPECT TO ANY ACTION WHICH INCLUDES INJUNCTIVE RELIEF OR
OTHER PROVISIONAL RELIEF, ANY PARTY MAY BRING SUCH ACTION IN ANY COURT IN ANY STATE WHICH HAS JURISDICTION.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, in actions that include injunctive or other provisional relief, any party, including Belocal, may bring such action in any court in any state that has jurisdiction. This means Belocal is not restricted to only filing suit in the location of its principal business office if it is seeking an injunction.
This clause provides Belocal with the flexibility to pursue legal action, particularly for injunctive relief, in a location deemed most advantageous, potentially closer to the franchisee or where the violation occurred. For a prospective franchisee, this could mean facing legal proceedings in a state other than where their franchise is located.
It is important for a prospective Belocal franchisee to understand the implications of this clause, as it waives the typical venue restrictions and could result in increased legal expenses if a dispute arises that requires injunctive relief. Franchisees should consult with a legal professional to fully assess the risks and benefits associated with this provision.