To which state and federal courts does the Covenantor irrevocably submit for jurisdiction in the Belocal agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REFERENCE TO TEXAS CONFLICT OF LAW PRINCIPLES.
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 (which refers to the franchisee in this context) irrevocably submits to the jurisdiction of the state and federal district courts. These courts must be located in the state, county, or judicial district where Belocal's principal place of business is situated. This means that any legal disputes arising under the franchise agreement will be litigated in the specific jurisdiction where Belocal has its main business operations.
This clause also stipulates that the Covenantor waives any objections to personal jurisdiction or venue, ensuring that they cannot challenge the chosen location of the courts. Furthermore, the Covenantor agrees that service of process, which is the formal delivery of legal documents, can be made through any means allowed by Texas or federal law. This simplifies the process of initiating legal proceedings against the franchisee.
However, there is an exception: Belocal retains the right to bring an action for injunctive relief or other extraordinary relief in any court in any state that has jurisdiction. This allows Belocal to seek immediate legal remedies, such as a temporary restraining order, in a location that is most advantageous to them, regardless of where their principal place of business is located. This could be significant in cases where Belocal needs to quickly prevent a franchisee from taking actions that could harm the brand or business operations.