Which section of the Belocal franchise agreement benefits and binds certain third-party non-signatories?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limitation of the foregoing, the provisions of Section 14. are intended to benefit and bind certain third-party non-signatories and shall continue in full force and effect subsequent to and notwithstanding this Agreement's expiration or termination.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Section 14 of the franchise agreement is specifically intended to benefit and bind certain third-party non-signatories. This provision remains in effect even after the agreement expires or is terminated. This means that certain individuals or entities who are not directly parties to the franchise agreement may still have rights or obligations under Section 14.
This is an important consideration for prospective Belocal franchisees because it extends the reach and impact of the franchise agreement beyond just the franchisee and franchisor. Franchisees should carefully review Section 14 to understand who these third-party non-signatories are and what rights or obligations they have. This could include suppliers, customers, or other related parties.
Understanding which sections of the agreement extend to third parties is crucial for assessing the full scope of legal and business relationships created by the franchise agreement. Franchisees should seek legal counsel to fully understand the implications of this provision and how it may affect their business operations and relationships with other parties.