Does the Belocal agreement include a waiver of the right to a 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.
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 the right to a jury trial. Specifically, the franchisee and franchisor 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, regardless of whether other parties are involved. This means that any disputes arising between Belocal and its franchisees will be resolved by a judge rather than a jury.
Additionally, for those signing the agreement as a Covenantor, they also unconditionally and irrevocably waive any right to a jury trial in any action arising out of or connected with the agreement. The scope of this waiver is intended to encompass any and all disputes that may be filed in any court. The agreement may be filed as written consent to a trial by the court in the event of litigation.
However, the FDD also includes addenda for franchisees in certain states that may modify or supersede the jury trial waiver. For example, in Minnesota, the agreement is amended to delete all references to a waiver of jury trial to the extent required by Minnesota law. Similarly, in Washington, provisions that limit the right to a jury trial may not be enforceable. Therefore, the enforceability of the jury trial waiver may depend on the franchisee's location.
Prospective franchisees should be aware of these waivers and understand the implications of foregoing a jury trial. They should consult with an attorney to understand the specific laws in their state and how they may affect the enforceability of the jury trial waiver in the Belocal franchise agreement.