What agreement must the Transferee enter into with Belocal on or before Closing?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 14. of the Franchise Agreement.
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- New Franchise Agreement. Transferee and Transferee's Principals have read and understand Franchisor's current form of franchise agreement with related attachments, if any (collectively, "New Franchise Agreement"), and agree that on or before Closing, Transferee will enter into the New Franchise Agreement with Franchisor and execute or cause to be executed all attachments thereto, and Transferee Principals will each execute the Principals' Undertaking (Attachment C to the New Franchise Agreement).
5. Releases
- a. By Franchisor. Except for the obligations set forth in this Transfer Agreement, Franchisor irrevocably and unconditionally releases, acquits, and forever discharges Transferor and each Transferor Principal ("Transferor Parties") from all actions, causes of action, suits, debts, liens, obligations, promises, liabilities, claims, rights, demands, damages, controversies, losses, costs, and expenses (including attorneys' fe
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a transferee—the party acquiring the franchise—must enter into Belocal's current form of franchise agreement on or before the closing date of the transfer. This agreement must be in a form satisfactory to Belocal. The term of this new franchise agreement will end on the same expiration date as the original agreement.
Furthermore, if the transferee is a corporation, partnership, limited liability company, or other entity, those principals designated by Belocal must also execute the agreement and guarantee its performance. This ensures that the obligations of the franchise agreement are fully secured, even if the franchisee is a business entity.
In addition to the new franchise agreement, the transferee and its principals must read and understand Belocal's current form of franchise agreement with any related attachments, collectively referred to as the "New Franchise Agreement." They must agree to enter into this agreement with Belocal on or before closing and ensure that all attachments are executed. Transferee Principals must also execute the Principals' Undertaking, which is Attachment C to the New Franchise Agreement. This comprehensive requirement ensures that all parties involved are fully aware of and committed to the terms and conditions of the franchise.