What exactly is being assigned and transferred to the Assignee in the Belocal franchise agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Assignment. Assignor hereby assigns and transfers to Assignee all of its right, title, and interest in and to the Franchise Agreement as of this Agreement's Effective Date.
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- Assumption. Assignee hereby assumes all of Assignor's obligations, agreements, commitments, duties, and liabilities under the Franchise Agreement and agrees to be bound by and observe and faithfully perform all of the obligations, agreements, commitments, and duties of Assignor under the Franchise Agreement with the same force and effect as if the Franchise Agreement had been originally written with Assignee as Franchisee.
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- Amendment to Franchise Agreement.
- a. All references to [Assignor Name] as Franchisee in the Franchise Agreement are hereby deleted and replaced with [Assignee Name].
- b. Attachment E to the Franchise Agreement is hereby deleted in its entirety and replaced with the Amended Attachment E attached hereto.
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- Representations and Warranties. Assignee hereby represents and warrants that the ownership interests in Assignee are accurately and completely described in the table set forth in Amended
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, when an assignment of the franchise agreement occurs, the Assignor transfers all rights, title, and interest in the Franchise Agreement to the Assignee. This transfer is effective as of the agreement's Effective Date.
Furthermore, the Assignee assumes all of the Assignor's obligations, agreements, commitments, duties, and liabilities under the Franchise Agreement. The Assignee agrees to be bound by and faithfully perform all of the obligations as if they were the original franchisee. This means the Assignee steps into the shoes of the original franchisee, taking on both the benefits and responsibilities of the franchise agreement.
Additionally, the franchise agreement is amended to reflect the change in franchisee. All references to the original franchisee (Assignor) are replaced with the new franchisee's (Assignee) name. Attachment E to the Franchise Agreement is also deleted and replaced with an amended version, indicating potential changes in ownership or other relevant details. The Assignee also represents and warrants that the ownership interests are accurately described in the amended Attachment E, and all individuals listed must sign a Principals' Undertaking.