What is the effect of the California amendment on any other term of any document executed in connection with the Belocal franchise?

According to Belocal's 2025 Franchise Disclosure Document, the California amendment includes a specific provision that supersedes any other conflicting terms in any document related to the franchise agreement. This provision ensures that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under California franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Belocal or its representatives.

In practical terms, this means that if a Belocal franchisee in California signs any document that appears to waive their rights under California franchise law or suggests they did not rely on the franchisor's statements, that part of the document is unenforceable. The amendment is designed to protect franchisees from inadvertently giving up their legal rights during the initial stages of the franchise relationship.

This type of clause is particularly important in California due to its strong franchise protection laws. It prevents Belocal from using standardized forms or agreements to circumvent these protections. Prospective franchisees should still carefully review all documents and seek legal advice, but this provision offers an additional layer of security.

It is important to note that this provision specifically addresses waivers of claims and disclaimers of reliance. Other aspects of the franchise agreement are subject to California law, as noted in other sections of the FDD, such as those related to termination, transfer, non-renewal, covenants not to compete, liquidated damages, choice of law, and arbitration.