Does the Belocal agreement state that the Covenantor waives all questions of venue?
Belocal Franchise · 2025 FDDAnswer 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.
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 Belocal franchisee agrees to resolve any legal disputes in the jurisdiction where Belocal's principal place of business is located, giving up the right to argue for a different venue.
Specifically, the agreement dictates that the Covenantor 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. Furthermore, the franchisee agrees that the venue for any legal proceedings related to the agreement will be in the same county or judicial district as Belocal's principal place of business.
However, there is an exception: Belocal retains the right to bring actions involving injunctive or other extraordinary relief in any court in any state that has jurisdiction. This clause provides Belocal with the flexibility to pursue legal action in a location that it deems most advantageous for specific types of disputes, such as those requiring immediate intervention or specialized expertise. This could potentially place an additional burden on the franchisee, who may have to defend against such actions in a distant or unfamiliar jurisdiction.