What representation does the Assignee make regarding ownership interests in the Belocal agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Assignee hereby represents and warrants that the ownership interests in Assignee are accurately and completely described in the table set forth in Amended
Attachment E attached hereto, and that each person listed in that table will sign the Principals' Undertaking attached hereto as Schedule 1.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, when an assignor transfers their rights and obligations to an assignee, the assignee must accurately describe the ownership interests in the company. Specifically, the assignee represents and warrants that the ownership interests are accurately and completely described in Amended Attachment E.
Amended Attachment E requires a list of all shareholders, partners, members, or other investors owning a direct or indirect interest in the franchisee, along with a description of the nature of their interests. This statement of ownership interests and management information ensures transparency in the Belocal franchise ownership structure.
Furthermore, each person listed in the table within Amended Attachment E must sign the Principals' Undertaking. This undertaking likely involves certain obligations and agreements on the part of the principals, reinforcing their commitment to the franchise agreement and ensuring accountability within the Belocal franchise system.