If the Belocal Principal is an Owner, which specific sections of the Agreement do they make covenants, representations, and warranties for?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) If Principal is an Owner, Principal (i) makes all of the covenants, representations, and warranties set forth in Sections 7.B and 7.D of the Agreement and (ii) represents that each and every representation of Franchisee made in connection with the Agreement is true, correct, and complete in all respects as of the time given and as of the time of the undersigned's execution of this Principals' Undertaking.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a Principal who is also an Owner makes specific covenants, representations, and warranties within the Franchise Agreement. Specifically, the Principal makes all of the covenants, representations, and warranties set forth in Sections 7.B and 7.D of the Agreement. Additionally, the Principal represents that each and every representation of Franchisee made in connection with the Agreement is true, correct, and complete in all respects as of the time given and as of the time of the undersigned's execution of this Principals' Undertaking.
This means that Owners are held to a higher standard of accountability and are bound by specific sections related to confidentiality, non-competition, and other key obligations outlined in Sections 7.B and 7.D. This ensures that Owners are fully committed to upholding the integrity and standards of the Belocal franchise system.
Prospective franchisees should carefully review Sections 7.B and 7.D of the Franchise Agreement to fully understand the scope of these covenants, representations, and warranties. Understanding these obligations is crucial for Principals who are also Owners, as any failure to comply could result in a breach of the agreement and potential legal consequences.