What does each party irrevocably and unconditionally waive regarding legal proceedings related to the Belocal franchise agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. FRANCHISOR AND COVENANTOR HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVE ANY RIGHT TO A JURY TRIAL IN ANY ACTION ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED TO ENCOMPASS ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS WRITTEN CONSENT TO A TRIAL BY THE COURT.
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- This Agreement contains the entire agreement of the parties regarding the subject matter hereof. This Agreement may be modified or amended only by a duly-authorized writing executed by all parties.
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- Any and all notices required or permitted under this Agreement will be in writing and will be personally delivered or mailed by expedited delivery service or certified or registered mail, return receipt requested, first-class postage prepaid, or sent by facsimile or electronic mail to the respective parties at the following addresses unless and until a different address has been designated by written notice to the other parties.
If directed to Franchisor, the notice will be addressed to:
N2 Franchising, Inc.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, both the franchisor and franchisee (or covenantor) involved in the franchise agreement irrevocably and unconditionally waive certain rights related to legal proceedings. Specifically, they waive the right to a jury trial in any action, proceeding, or counterclaim arising out of or connected with the agreement. This waiver applies regardless of whether there are other parties involved in the legal action.
Additionally, the covenantor (which may refer to the franchisee or another party bound by specific obligations) waives all objections related to personal jurisdiction or venue. This means the covenantor agrees to be subject to the jurisdiction of the courts where Belocal's principal place of business is located, and they cannot argue that the location is inconvenient or inappropriate. The covenantor also agrees that service of process can be made through any means permitted by Texas or federal law.
These waivers are significant because they limit the legal options available to both parties in case of a dispute. By waiving the right to a jury trial, disputes will be decided by a judge. By consenting to jurisdiction and venue, the franchisee agrees to litigate in the location of Belocal's choosing, which could be a disadvantage depending on the franchisee's location. Prospective franchisees should carefully consider these waivers and consult with an attorney to understand their implications before signing the franchise agreement.