Is the 'Full and Independent Knowledge' clause applicable to Belocal franchisees in Washington state?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- [OMIT FOR WASHINGTON FRANCHISEES; FOR USE IN STATES OTHER THAN WASHINGTON:] Full and Independent Knowledge. Franchisee represents that it has been represented by an attorney in connection with the preparation and review of this Agreement, that it has specifically discussed with its attorney the meaning and effect of this Agreement, and that it has carefully read and understands the scope and effect of each provision contained herein. Franchisee further represents that it does not rely and has not relied upon any representation or statement made by the Franchisor or, any of the Releasees or any of their representatives with regard to the subject matter, basis, or effect of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the 'Full and Independent Knowledge' clause is specifically omitted for franchisees in Washington state. This clause typically requires the franchisee to acknowledge that they have consulted with an attorney, understand the franchise agreement, and have not relied on any representations made by Belocal.
For prospective Belocal franchisees in Washington, this omission means that they are not required to make such a representation. This could potentially offer some protection to the franchisee, as they are not explicitly stating that they did not rely on the franchisor's representations. This could be beneficial if a franchisee later claims they were misled during the franchise sales process.
It is important for prospective franchisees in Washington to understand that while this clause is omitted, they still have a responsibility to conduct their own due diligence and seek independent legal advice before signing the franchise agreement. The Washington Addendum to the Franchise Disclosure Document emphasizes the importance of franchisees conducting their own investigation by contacting Belocal's current and former franchisees and to not rely solely on the information provided by a franchise broker.