If the Belocal Franchise Agreement requires application of Texas laws, is this provision always enforceable under California law?

According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement requires the application of Texas laws. However, this provision may not be enforceable under California law. This means that a California Belocal franchisee may not be bound by the Texas laws stipulated in the agreement if those laws conflict with California law.

This is significant for prospective franchisees in California because California law provides specific protections to franchisees, particularly concerning termination, transfer, or non-renewal of a franchise. If the Belocal agreement contains any provision inconsistent with California Business and Professions Code Sections 20000 through 20043, California law will take precedence.

Therefore, a Belocal franchisee in California should be aware that certain aspects of the franchise agreement, particularly those governed by Texas law, might be superseded by California law to protect the franchisee's rights within the state. It is advisable for prospective franchisees to consult with legal counsel to understand the full implications of this clause and how it may affect their franchise agreement.