Does the Belocal agreement include a waiver of jury trial?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (2) WAIVER OF JURY TRIAL. FRANCHISEE AND FRANCHISOR HEREBY IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER OF THEM AGAINST THE OTHER, WHETHER OR NOT THERE ARE OTHER PARTIES IN SUCH ACTION OR PROCEEDING.
- (3) WAIVER OF PUNITIVE DAMAGES. THE PARTIES HEREBY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR CLAIM OF ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER AND AGREE THAT IN THE EVENT OF A DISPUTE BETWEEN THEM, CLAIMS FOR DAMAGES SHALL BE LIMITED TO THE RECOVERY OF ANY ACTUAL DAMAGES SUSTAINED BY A PARTY.
- (4) Attorneys' Fees. If either party commences a legal action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to have and recover from the other party its reasonable attorneys' fees and costs of suit.
15. CONSTRUCTION OF AGREEMENT
- A. Entire Agreement. This Agreement, the documents referred to herein, and the Attachments hereto constitute the entire, full, and complete agreement between Franchisor, Franchisee, and Principals concerning the subject matter hereof and supersede all prior related understanding, representations (including, unless otherwise agreed to by the parties, the representations of any franchised sellers), or agreements concerning the subject matter hereof;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement includes a waiver of jury trial. Franchisees and Belocal both irrevocably waive their right to a jury trial in any action, proceeding, or counterclaim brought against each other, whether at law or in equity. This waiver applies regardless of whether other parties are involved in the action or proceeding.
This means that any disputes arising between a Belocal franchisee and Belocal will be resolved by a judge rather than a jury. This is a common practice in franchise agreements, as it can lead to quicker and more cost-effective resolutions. Jury trials can be lengthy and expensive, and franchisors often prefer to have disputes decided by a judge who is familiar with contract law.
However, prospective franchisees should be aware of the implications of waiving their right to a jury trial. A jury trial can provide an opportunity for a franchisee to present their case to a group of their peers, which may be advantageous in certain situations. By agreeing to a jury trial waiver, franchisees give up this right and agree to have their disputes decided by a judge alone. Franchisees should consider consulting with an attorney to fully understand the implications of this waiver before signing the franchise agreement.
It is important to note that the waiver of a jury trial is mutual, meaning that Belocal also gives up its right to a jury trial in any dispute with a franchisee. Additionally, the FDD states that in the event of litigation, the agreement may be filed as written consent to a trial by the court.