Under what state's laws will the Belocal Transfer Agreement be interpreted and construed?

According to Belocal's 2025 Franchise Disclosure Document, the Transfer Agreement will be interpreted and construed under the laws of the state of Texas. This is without regard to the application of Texas conflict of law rules. This means that any disputes arising from the Transfer Agreement will be subject to Texas law, regardless of where the franchisee is located.

This clause is important for prospective Belocal franchisees because it establishes the legal framework that will govern the Transfer Agreement. Franchisees should be aware that if a dispute arises, they may need to engage legal counsel familiar with Texas law. This could potentially increase legal costs, especially if the franchisee is located outside of Texas.

Governing law clauses are standard in franchise agreements. Franchisees should carefully review this section and understand its implications, especially if they are located in a state other than the one whose laws govern the agreement. It is advisable to seek legal counsel to fully understand the potential impact of this clause on their rights and obligations under the Transfer Agreement.