What is the effect of the Assignee assuming the Assignor's obligations under the Belocal franchise agreement?

According to Belocal's 2025 Franchise Disclosure Document, when an Assignee assumes the Assignor's obligations under the franchise agreement, the Assignee takes on all of the Assignor's responsibilities as if the agreement was originally written with the Assignee as the franchisee. Specifically, the Assignee agrees to be bound by and observe and faithfully perform all of the obligations, agreements, commitments, and duties of Assignor under the Franchise Agreement.

Furthermore, all references to the Assignor's name in the Franchise Agreement are replaced with the Assignee's name. Attachment E to the Franchise Agreement is also deleted and replaced with an amended version. The Assignee must also accurately describe the ownership interests in an amended Attachment E and ensure that each person listed signs a Principals' Undertaking.

In addition, the assignor releases Belocal from all claims and damages, whether known or unknown, with some exceptions for transfers in Washington. The transferor remains liable for all obligations to Belocal incurred prior to the transfer date and must execute any instruments to evidence this liability. The transferee may also be required to execute Belocal's current form of franchise agreement, which may have different terms and higher fees, although the transferee will not be required to pay an initial franchise fee.