Does the Belocal Franchise Agreement state that the releases contained within it should be considered an admission of liability by the franchisor?

According to Belocal's 2025 Franchise Disclosure Document, the Franchise Agreement explicitly states that the releases within the agreement are the result of a compromise. It specifies that these releases should not be interpreted at any time or for any purpose as an admission of liability or responsibility on the part of Belocal or the released parties regarding any matter. This clause is designed to protect Belocal from any implication that settling a claim or dispute constitutes an acknowledgment of wrongdoing.

For a prospective Belocal franchisee, this means that any releases signed during the franchise relationship, such as during a transfer or termination, are considered a compromise and not an admission of liability by Belocal. This provision is intended to provide Belocal with legal protection and clarity in its dealings with franchisees. It also suggests that Belocal aims to resolve disputes through negotiation and compromise rather than through formal admissions of fault.

This type of clause is relatively common in franchise agreements, as franchisors seek to limit their potential liability and ensure that settlements are not misconstrued as admissions of guilt. Franchisees should be aware of this provision and understand that any releases they sign are intended to be a final resolution of the matter at hand, without implying any fault on Belocal's part. Franchisees should consult with legal counsel to fully understand the implications of such releases before signing them.