In the event that a section of the Belocal Transfer Agreement is deemed invalid, what will happen to the remaining sections of the agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Except as expressly provided to the contrary herein, each portion, section, | |
|---|---|
| part, term, and provision of this Transfer Agreement will be considered severable; and if, for any reason, | |
| any portion, section, part, term, or provision is determined to be invalid and contrary to, or in conflict with, | |
| any existing or future law or regulation by a court or agency having valid jurisdiction, such determination | |
| will not impair the operation of, or have any other effect upon, the other portions, sections, parts, terms, or | |
| provisions of this Transfer Agreement that may remain otherwise intelligible, and the latter will continue | |
| to be given full force and effect and bind the parties; the invalid portions, sections, parts, terms, or provisions | |
| will be deemed not to be part of this Transfer Agreement; and such portion, section, part, term, or provision | |
| as similar as possible to that which was severed will automatically be added, which addition will be valid | |
| and not contrary to or in conflict with any law or regulation |
Source: Item 23 — RECEIPTS (FDD pages 71–242)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, each part of the Transfer Agreement is severable. This means that if a court or agency with jurisdiction determines that any part of the Transfer Agreement is invalid because it conflicts with existing or future laws, the remaining parts of the agreement will still be valid and enforceable.
The determination of invalidity will not affect the operation or effect of the other intelligible parts of the Transfer Agreement. Those remaining parts will continue to bind the parties with full force.
Furthermore, the invalid section will be removed from the Transfer Agreement and replaced with a similar provision that is valid and does not conflict with any laws or regulations. This ensures that the Transfer Agreement remains as close as possible to the original intent of the parties, while still complying with legal requirements.