Regarding the Belocal agreement, what acknowledgement is made by the assignor regarding the release of claims, specifically in states other than Washington?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- [OMIT FOR WASHINGTON FRANCHISEES; FOR USE IN STATES OTHER THAN WASHINGTON:] Acknowledgments Regarding Releases. By affixing its signature to this Agreement, Assignor acknowledges that it has carefully read and fully understands the provisions of this Agreement, including, specifically, the release of claims set forth in Sections 5. of this Agreement, and that its release of such claims is knowing and voluntary. Assignor acknowledges that it has had a reasonable opportunity to consult with an attorney prior to executing this Agreement and that it has executed this Agreement voluntarily. Assignor acknowledges that Franchisor has advised it to consult with an attorney before executing this Agreement. Assignor represents that it does not rely, and has not relied upon, any representation or statement made by any of the Released Parties or any of their representatives with regard to the subject matter, basis, or effect of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, assignors in states other than Washington must acknowledge certain aspects of the release of claims within the transfer agreement. Specifically, the assignor acknowledges that they have carefully read and fully understand the provisions of the agreement, including the release of claims outlined in Section 5 of the agreement. This acknowledgement confirms that the assignor's release of claims is both knowing and voluntary.
Furthermore, the assignor acknowledges that they had a reasonable opportunity to consult with an attorney before signing the agreement and that their execution of the agreement is voluntary. Belocal also states that the assignor acknowledges that Belocal advised them to consult with an attorney before executing the agreement.
Finally, the assignor represents that they do not rely on any representations or statements made by the Released Parties or their representatives regarding the subject matter, basis, or effect of the agreement. This indicates that the assignor is making decisions based on their own understanding and counsel, rather than solely on information provided by Belocal or related parties. These acknowledgements are not required for transfers in Washington.