Under which state's laws will the Belocal agreement be governed, construed, and enforced?

According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement will be governed by, construed, and enforced in accordance with the laws of the state of Texas. This is specified without reference to Texas's conflict of law principles.

This means that any legal disputes arising from the franchise agreement will be interpreted and resolved based on Texas law, regardless of where the franchisee is located. It is important for prospective franchisees to understand the implications of Texas law on their business operations and rights under the agreement.

However, the FDD also notes an exception for franchisees in California. For California franchisees, the agreement's requirement for the application of Texas laws may not be enforceable under California law. Prospective franchisees in California should consult with legal counsel to understand how California franchise laws may supersede the agreement's governing law provision.