To which courts does the Covenantor irrevocably submit for jurisdiction in the Belocal agreement?
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 irrevocably submits to the jurisdiction of the state and federal district courts located in the state, county, or judicial district in which Belocal's principal place of business is located. This means that any legal proceedings initiated against the Covenantor related to the franchise agreement must be pursued in these specific courts.
This clause ensures that Belocal can litigate disputes in a location convenient to its operations. However, there is an exception: with respect to any action which includes injunctive relief or other extraordinary relief, Belocal may bring such action in any court in any state which has jurisdiction. This allows Belocal to seek immediate legal remedies, like injunctions, in a location where it can most effectively protect its interests, even if that location is not where its principal place of business is located.
For a prospective Belocal franchisee, this means they may have to travel to the location of Belocal's principal business office to resolve legal disputes. It is important to note that the Covenantor waives all questions of personal jurisdiction or venue, agreeing to this arrangement in advance. Franchisees should consider the potential costs and inconvenience of litigating in this jurisdiction when evaluating the franchise opportunity.