exception

Under what circumstances can Belocal bring an action in any court in any state which has jurisdiction?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

NOTWITHSTANDING THE ABOVE, 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.

Source: Item 22 — CONTRACTS (FDD page 71)

What This Means (2025 FDD)

According to Belocal's 2025 Franchise Disclosure Document, while general legal actions must occur within the county or federal judicial district of Belocal's principal business office, there's an exception. Belocal, or any party, can initiate an action, including requests for injunctive relief or other provisional relief, in any court within any state that possesses the necessary jurisdiction. This applies regardless of the standard venue requirements.

For a prospective Belocal franchisee, this means that while most legal disputes will be handled in the location of Belocal's principal business office, Belocal retains the right to seek immediate legal remedies like injunctions in any jurisdiction where a court has the power to act. This could occur if Belocal believes a franchisee is causing immediate harm to the brand or violating the franchise agreement in a way that requires urgent intervention.

This clause is important because it allows Belocal to act swiftly to protect its interests across different states without being restricted to a single venue. However, it also means that a franchisee could potentially face legal action from Belocal in a court outside of their own state, which could increase legal costs and logistical challenges.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.