For what purpose do Belocal franchisees and principals consent to personal jurisdiction in the state and federal courts where Belocal's principal business office is located?

According to Belocal's 2025 Franchise Disclosure Document, franchisees and their principals consent to personal jurisdiction in the state and federal courts located in the county where Belocal maintains its principal place of business for the purpose of provisional and/or conservatory relief, including injunctions or pre-arbitral attachments. This consent is irrevocable. This means that Belocal franchisees agree that any legal actions they initiate against Belocal (or vice versa) relating to these specific types of relief must be brought in the courts located in the county where Belocal's main business office is situated.

This requirement impacts a franchisee because it mandates that any legal proceedings for provisional relief must occur in a specific jurisdiction, potentially requiring the franchisee to incur travel and legal expenses in a location different from where their franchise operates. It also means that franchisees waive the right to argue that the chosen forum is inconvenient or lacks jurisdiction. However, the FDD also states that with respect to any action which includes injunctive relief or other provisional relief, any party may bring such action in any court in any state which has jurisdiction.

This clause is designed to provide Belocal with a consistent and predictable legal venue. While it may seem disadvantageous to the franchisee, such clauses are common in franchise agreements to ensure uniformity and reduce the potential for disputes over jurisdiction. Prospective franchisees should consider the implications of this clause, especially if they reside far from Belocal's principal place of business, and consult with legal counsel to understand their rights and obligations fully.