What is the relationship between the Assignor and Assignee in the Belocal agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Assignor is the sole owner of Assignee and desires to assign to Assignee all of Assignor's rights and obligations under the Franchise Agreement and Assignor's rights and title to the Franchised Business.
- C. Franchisor has agreed to consent to the assignment and assumption set forth in this Agreement, pursuant to the terms and conditions set forth herein.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Assignor is the sole owner of the Assignee. The Assignor desires to transfer all rights and obligations under the Franchise Agreement, including the rights and title to the Franchised Business, to the Assignee. This transfer is formalized through an Assignment and Assumption Agreement, where the Assignor assigns its rights to the Assignee, and the Assignee assumes all obligations under the original Franchise Agreement.
In this agreement, all references to the Assignor's name as the Franchisee in the original Franchise Agreement are replaced with the Assignee's name. Furthermore, Attachment E to the Franchise Agreement, which likely contains details about ownership interests and management information, is replaced with an amended version to reflect the new ownership structure under the Assignee.
This arrangement allows for a smooth transition of the Belocal franchise, ensuring that the new entity (Assignee) is fully responsible for the business's operations and bound by the terms of the original Franchise Agreement. The Franchisor, Belocal, consents to this assignment, indicating their approval of the change in ownership and management.