In legal actions between Belocal and the franchisee, is the right to a jury trial waived?
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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees typically waive their right to a jury trial in disputes with Belocal. Item 22 of the FDD outlines specific conditions regarding legal actions. Franchisees and Belocal both irrevocably waive the right to a jury trial in any action, proceeding, or counterclaim, whether based in law or equity. This waiver applies regardless of whether other parties are involved in the legal action. This means that any disputes between you and Belocal will be resolved by a judge rather than a jury.
This waiver is a significant legal consideration for prospective franchisees. Jury trials can be more unpredictable and potentially lead to larger damage awards. By waiving this right, franchisees agree to have their case decided by a judge, who may be perceived as more impartial and knowledgeable about the law. However, it also means foregoing the opportunity to present their case to a jury of their peers, which some may see as a disadvantage.
It's important to note that these waivers may not be enforceable in all jurisdictions. For example, the FDD includes addenda for Minnesota and Washington, stating that certain provisions, including jury trial waivers, may not be enforceable under those states' franchise laws. Therefore, prospective franchisees should consult with an attorney to understand the implications of these waivers in their specific state and to ensure their rights are protected.
Specifically, the Washington Franchise Investment Protection Act indicates that provisions that unreasonably restrict or limit rights or remedies under the Act, such as the right to a jury trial, may not be enforceable. Similarly, Minnesota Rule 2860.4400(J) prohibits Belocal from requiring a waiver of a jury trial in Minnesota. These state-specific regulations highlight the importance of understanding local laws and how they may impact the franchise agreement.