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

According to Belocal's 2025 Franchise Disclosure Document, Belocal has the right to transfer or assign the Franchise Agreement to another person or legal entity without getting the franchisee's consent or even notifying them beforehand. If Belocal does transfer or assign the agreement, the person or entity that receives the agreement becomes solely responsible for Belocal's obligations under the agreement from that point forward.

This means that if Belocal sells the franchise system or transfers its rights and obligations to another company, the new company will be responsible for fulfilling Belocal's duties to the franchisees. Belocal is no longer responsible for obligations after the transfer or assignment takes place. This is a standard practice in franchising, as it allows a franchisor to sell its business without requiring the consent of each individual franchisee.

For a prospective Belocal franchisee, this clause means that the stability and reputation of Belocal are important considerations. If Belocal were to be acquired by a less reputable or less financially stable company, the franchisee would have to rely on the new company to uphold the terms of the franchise agreement. It is important to note that the new franchise agreement may differ from the original agreement, potentially including higher fees.