To which state and federal courts does the Covenantor irrevocably submit for jurisdiction regarding the Belocal agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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 irrevocably submits to the jurisdiction of the state and federal district courts located in the state, county, or judicial district in which Belocal's principal place of business is located. This means that any legal disputes arising under the franchise agreement will be heard in these courts. The Covenantor also waives all questions of personal jurisdiction for the purpose of carrying out this provision.
This clause is significant for prospective Belocal franchisees because it dictates where they can be sued and where they must bring any legal action against Belocal. Franchisees should be aware of the location of Belocal's principal place of business, as this will determine the jurisdiction of the courts. This may impact the cost and convenience of resolving disputes.
However, Belocal retains the right to bring an action for injunctive or other extraordinary relief in any state or federal district court that has jurisdiction. This means that Belocal can seek a court order to stop a franchisee from violating the franchise agreement in any location where the franchisee is operating. Franchisees should consult with an attorney to fully understand the implications of these provisions.