Does the release by Belocal's Franchisor include attorneys' fees and costs?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Form for Transfers and Other Occasions]
- Release of Claims. Franchisee and its Principals, for themselves and on behalf of their respective guarantors, predecessors, parents, subsidiaries, affiliates, shareholders, members, partners, officers, directors, managers, employees, agents, representatives, attorneys, accountants, heirs, executors, administrators, family members, successors, and assigns, and all other persons acting on their behalf or claiming under them (collectively referred to as the "Franchisee Related Parties") irrevocably and unconditionally release and forever discharge Franchisor, Franchisor's predecessors, parents, subsidiaries, and affiliates, and their respective officers, directors, shareholders, partners, managers, members, agents, representatives, independent contractors, servants, employees, attorneys, accountants, guarantors, successors, and assigns, past and present, in their corporate and individual capacities, and all persons acting by, through, under or in concert with any of them (collectively "Releasees"), from all actions, causes of action, suits, debts, liens, contracts, agreements, obligations, promises, liabilities, claims, rights, demands, damages, controversies, losses, costs, and expenses (including attorneys' fees and costs actually incurred) of any nature whatsoever, known or unknown, suspected or unsuspected, fixed or contingent ("Claim" or "Claims"), which they now have or claim to have or at any time heretofore have had or claimed to have against each or any of the Releasees, including, without limitation, any and all such Claims arising from, based upon or related to the Franchise Agreement.
[For California franchisees, add: Each of the Releasing Parties expressly waives and relinquishes all rights and benefits which either may now have or in the future have under and by virtue of California Civil Code Section 1542. The Releasing Parties do so understanding the significance and consequence of such specific waiver.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the release of claims by the franchisee includes attorneys' fees and costs actually incurred. Specifically, the franchisee releases Belocal from all claims, demands, damages, and expenses, including attorneys' fees and costs, whether known or unknown, related to the Franchise Agreement. This comprehensive release covers a wide range of potential liabilities.
This means that a franchisee who signs a general release is giving up their right to sue Belocal for any reason covered by the release, and this includes any claims for reimbursement of legal expenses. This is a significant consideration for prospective franchisees, as it limits their legal recourse against Belocal.
In the event that Belocal initiates legal proceedings to enforce the agreement, the franchisee is responsible for covering all associated costs and expenses, including attorney's fees. This provision places the financial burden of legal enforcement on the franchisee, potentially increasing their financial risk. Franchisees should carefully consider the implications of these clauses and seek legal counsel to fully understand their rights and obligations under the franchise agreement.