factual

Does the Belocal agreement state that the Covenantor waives all questions of personal jurisdiction?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

COVENANTOR HEREBY IRREVOCABLY SUBMITS HIMSELF OR HERSELF TO THE JURISDICTION OF THE STATE AND FEDERAL DISTRICT COURTS LOCATED IN THE STATE, COUNTY, OR JUDICIAL DISTRICT IN WHICH FRANCHISOR'S PRINCIPAL PLACE OF BUSINESS IS LOCATED.

COVENANTOR HEREBY WAIVES ALL QUESTIONS OF PERSONAL JURISDICTION OR VENUE FOR THE PURPOSE OF CARRYING OUT THIS PROVISION.

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. This means that the franchisee agrees to be subject to the jurisdiction of the courts where Belocal's principal place of business is located, regardless of where the franchisee's business is located.

Specifically, the franchisee submits to the jurisdiction of state and federal district courts in the state, county, or judicial district where Belocal's principal business is located. This waiver prevents the franchisee from challenging the court's authority over them based on their location or residency.

This clause is common in franchise agreements as it ensures that Belocal can pursue legal action against a franchisee in a location convenient for Belocal. While this benefits Belocal, it may create additional costs and inconvenience for the franchisee if a dispute arises, as they may be required to travel to Texas for legal proceedings.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.