factual

In the Belocal agreement, what does the Assignor release the Released Parties from, specifically related to the Franchise Agreement?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. Release. Assignor, for itself and on behalf of its guarantors, predecessors, parents, affiliates, subsidiaries, shareholders, members, partners, officers, directors, managers, employees, agents, representatives, attorneys, accountants, heirs, executors, administrators, family members, successors, and assigns, and all other persons acting on their behalf or claiming under them ("Assignor Releasing Parties"), hereby release, acquit, and forever discharge Franchisor, Franchisor's predecessors, parents, subsidiaries, and affiliates, and their present and former officers, directors, shareholders, partners, managers, members, agents, representatives, independent contractors, servants, employees, attorneys, accountants, guarantors, successors, and assigns, past and present, in their corporate and individual capacities, and all persons acting by, through, under or in concert with any of them ("Released Parties"), from all claims and damages whether known or unknown, which Assignor Releasing parties, or any of them, have, had, or claim to have against Released Parties, or any of them, including but not limited to claims arising out of or relating to the performance or non-performance of the Franchise Agreement or the relationships created thereby, this Agreement, and/or any other agreement between Assignor, Assignor's Principals, and/or entity owned in whole or in part by Assignor or Assignor's Principals on the one hand and Franchisor and/or any of its affiliates on the other hand. Excepted from this release are any contractual obligations under this Agreement, which remain in full force and effect.

[INCLUDE THE FOLLOWING SENTENCE FOR TRANSFERS IN WASHINGTON ONLY: The release in this Section 5 does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.]

[INCLUDE IF ASSIGNOR IS A CALIFORNIA RESIDENT: Assignor Releasing Parties, and each of them, expressly waive and relinquish all rights and benefits which any of them may now have or in the future have under and by virtue of California Civil Code Section 1542. Assignor Releasing Parties do so understanding the significance and consequence of such specific waiver. Section 1542 provides that "[a] general release does not extend to claims which the creditor does not know or suspect exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." For the purpose of implementing a general release and discharge as described in this Section 5., Assignor Releasing Parties expressly acknowledge that this Agreement is intended to include in its effect, without limitation, all claims described in this Section 5., which the parties do not know or suspect to exist in their favor at the time of execution hereof, and that this Agreement contemplates the extinguishment of any such claims.] [Include if Assignor is California resident.]

Source: Item 22 — CONTRACTS (FDD page 71)

What This Means (2025 FDD)

According to Belocal's 2025 Franchise Disclosure Document, the Assignor, on behalf of themselves and their related parties, releases the Released Parties from all claims and damages, whether known or unknown, that they have or claim to have against the Released Parties. This includes, but is not limited to, claims arising out of or relating to the performance or non-performance of the Franchise Agreement or the relationships created by it. The Released Parties include Belocal, its predecessors, parents, subsidiaries, and affiliates, as well as their present and former officers, directors, shareholders, partners, managers, members, agents, representatives, independent contractors, servants, employees, attorneys, accountants, guarantors, successors, and assigns.

This release extends to all persons acting by, through, under, or in concert with any of the Released Parties in their corporate and individual capacities. However, the release does not cover any contractual obligations under the Agreement, which remain in full force and effect.

For transfers occurring in Washington state only, the release in Section 5 does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its associated rules. If the assignor is a California resident, they expressly waive rights and benefits under California Civil Code Section 1542, acknowledging they understand the significance of waiving claims they do not know or suspect to exist at the time of executing the release.

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.