Does Belocal's consent to a transfer of interest waive any claims it may have against the assignor?

According to Belocal's 2025 Franchise Disclosure Document, Belocal's consent to a transfer of any interest does not constitute a waiver of any claims it may have against the assignor. Additionally, it does not waive Belocal's right to demand exact compliance with any of the terms or conditions of the agreement by the transferee. This condition applies specifically to transfers occurring upon the death or disability of the franchisee or a principal.

This means that even if Belocal approves the transfer of a franchise interest following the death or disability of a franchisee or principal, Belocal retains the right to pursue any existing claims against the party transferring the interest (the assignor). Furthermore, Belocal's approval of the transfer does not prevent them from enforcing all terms and conditions of the franchise agreement against the new owner (the transferee).

For a prospective Belocal franchisee, this clause highlights the importance of understanding all potential liabilities and obligations before considering a transfer, especially in situations involving death or disability. The assignor remains responsible for their prior obligations, and the transferee must be prepared to meet all the original terms of the agreement. This provision protects Belocal's interests by ensuring they do not lose any rights or claims simply by approving a transfer.