What obligations does the Assignee assume from the Assignor under the Belocal franchise agreement?

According to Belocal's 2025 Franchise Disclosure Document, an assignee assumes all of the assignor's obligations under the franchise agreement. Specifically, the assignee agrees to be bound by and observe and faithfully perform all of the obligations, agreements, commitments, and duties of the assignor as if the franchise agreement was originally written with the assignee as the franchisee. This means the assignee steps into the shoes of the original franchisee, taking on all responsibilities and liabilities outlined in the original franchise agreement.

This assumption of obligations is a standard practice in franchise resales. It ensures that the Belocal franchise continues to operate under the same terms and conditions, maintaining consistency and protecting the brand's integrity. The assignee must be prepared to meet all the requirements of the original agreement, including operational standards, payment schedules, and any other stipulations.

Furthermore, the franchise agreement will be amended to reflect the change in franchisee. All references to the assignor's name will be deleted and replaced with the assignee's name. Attachment E to the Franchise Agreement will also be deleted and replaced with an amended version. The assignee must also represent and warrant that the ownership interests in the assignee are accurately and completely described in the table set forth in Amended Attachment E, and that each person listed in that table will sign the Principals' Undertaking attached as Schedule 1.

In addition to assuming the assignor's obligations, the assignee should carefully review the original franchise agreement and any amendments to fully understand the scope of these obligations. It is advisable for the assignee to seek legal counsel to ensure they are fully aware of the commitments they are undertaking.