factual

Where will the venue be for any proceeding relating to or arising out of the Belocal agreement?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

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 venue for any proceeding relating to or arising out of the franchise agreement will be the county or judicial district in which Belocal's principal place of business is located. However, Belocal may bring any action for injunctive or other extraordinary relief in any court in any state which has jurisdiction.

This means that if a franchisee has a dispute with Belocal that leads to legal proceedings, the franchisee will likely have to travel to the location of Belocal's principal business office. This could create a financial burden for the franchisee, especially if they are located far from Belocal's headquarters. The franchisee is also submitting 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.

However, there is an exception: Belocal retains the right to initiate actions involving injunctive relief or other extraordinary remedies in any court that possesses jurisdiction, potentially allowing them to choose a venue more favorable to their interests in such specific cases. Prospective franchisees should consider this venue clause carefully, as it could impact the cost and convenience of resolving disputes with Belocal.

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.