If Belocal assigns the Franchise Agreement, who is responsible for the franchisor's obligations after the assignment?

According to Belocal's 2025 Franchise Disclosure Document, Belocal has the right to transfer or assign the Franchise Agreement to another entity without needing the franchisee's consent or even providing prior notice. If Belocal does transfer or assign the agreement, the entity that receives the agreement (the transferee or assignee) becomes solely responsible for all of Belocal's obligations under the agreement from that point forward.

This means that a Belocal franchisee could find themselves dealing with a completely different company as their franchisor. This new franchisor would be responsible for providing support, upholding the terms of the franchise agreement, and any other obligations Belocal had.

For a prospective franchisee, this highlights the importance of due diligence not only on Belocal itself but also on the possibility of a future change in ownership. While Belocal may seem like a good fit, there's no guarantee the new entity would operate in the same way or provide the same level of support. It is important to note that this is a fairly standard clause in most franchise agreements, as it allows the franchisor flexibility in business dealings.