In the Belocal agreement, does the Covenantor waive all questions of personal jurisdiction or venue?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
COVENANTOR HEREBY WAIVES ALL QUESTIONS OF PERSONAL JURISDICTION OR VENUE FOR THE PURPOSE OF CARRYING OUT THIS PROVISION.
COVENANTOR HEREBY AGREES THAT SERVICE OF PROCESS MAY BE MADE UPON HIM OR HER IN ANY PROCEEDING RELATING TO OR ARISING UNDER THIS AGREEMENT OR THE RELATIONSHIP CREATED BY THIS AGREEMENT BY ANY MEANS ALLOWED BY TEXAS OR FEDERAL LAW.
COVENANTOR FURTHER AGREES THAT VENUE FOR ANY PROCEEDING RELATING TO OR ARISING OUT OF THIS AGREEMENT WILL BE THE COUNTY OR JUDICIAL DISTRICT IN WHICH THE FRANCHISOR'S PRINCIPAL PLACE OF BUSINESS IS LOCATED; PROVIDED, HOWEVER, WITH RESPECT TO ANY ACTION WHICH INCLUDES INJUNCTIVE RELIEF OR OTHER EXTRAORDINARY RELIEF, FRANCHISOR 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, the Covenantor, which refers to the franchisee, explicitly waives all questions of personal jurisdiction or venue. This waiver is specifically for the purpose of carrying out the provisions outlined in the franchise agreement. This means that a franchisee agrees to resolve any legal disputes in the jurisdiction where Belocal's principal place of business is located, regardless of where the franchisee's business operates or where they reside.
Specifically, the FDD states that the Covenantor irrevocably submits to the jurisdiction of state and federal district courts located in the state, county, or judicial district where Belocal's principal business is situated. This clause ensures that Belocal can pursue legal action against a franchisee in its home jurisdiction, streamlining the legal process for the franchisor.
However, there is an exception: Belocal retains the right to bring actions involving injunctive or other extraordinary relief in any court that has jurisdiction. This allows Belocal to seek immediate legal remedies, such as injunctions, in locations where the franchisee's actions might be causing harm, providing flexibility in protecting its interests. Prospective franchisees should be aware of this clause, as it limits their ability to challenge the location of legal proceedings and could increase their costs if they need to defend themselves in a distant jurisdiction.