Does the Belocal Franchise Agreement state that the releases should be considered an admission of liability or responsibility on the part of the franchisor?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Compromise. Franchisee agrees for itself and the Franchisee Related Parties that the releases contained herein are the result of a compromise and shall never at any time or for any purpose be considered as an admission of liability or responsibility on the part of Franchisor or the Releasees regarding any matter.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Franchise Agreement specifies that any releases signed by the franchisee are the result of a compromise and should not be interpreted as an admission of liability or responsibility on Belocal's part. This clause protects Belocal from franchisees later claiming that the act of signing a release implies that Belocal acknowledges some wrongdoing or obligation.
This provision is fairly standard in franchise agreements. It aims to prevent franchisees from using the release as evidence against Belocal in future legal disputes. The franchisee agrees that the release is simply a settlement to avoid further conflict, not an admission of guilt by Belocal.
Prospective Belocal franchisees should understand that by signing a release, they are giving up certain rights to sue or make claims against Belocal. However, this clause clarifies that Belocal isn't implicitly admitting any fault by requiring the release. Franchisees should consult with an attorney to fully understand the implications of such releases before signing.