What is the permitted use of information furnished by Belocal franchisor to a proposed transferee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Any information furnished by Franchisor to any proposed transferee shall be for the sole purpose of permitting the proposed transferee to evaluate the Franchised Business, the Publication, and/or the proposed transfer and must not be construed in any manner or form whatsoever as claims of success or failure of the Franchised Business, the Publication, and/or the proposed transfer;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, any information that Belocal furnishes to a proposed transferee is strictly for the purpose of evaluating the Franchised Business, the Publication, and/or the proposed transfer. This information cannot be interpreted as a guarantee of success or failure for the business.
This means that a prospective buyer receiving information from Belocal should use it cautiously and solely for their due diligence. They cannot claim that Belocal's provision of this information implies any assurance about the business's future performance. The franchisee acknowledges that Belocal is providing the information to facilitate the transfer process, not to make any representations about the business's viability.
This clause protects Belocal from liability if the transferee relies on the information and the business does not perform as expected. It is a standard practice in franchising to ensure that all parties understand the limitations of the information provided during a transfer and to prevent potential misinterpretations or legal claims based on perceived guarantees.