What sections of the Belocal Franchise Agreement survive termination upon execution of the Transfer Agreement?

According to Belocal's 2025 Franchise Disclosure Document, upon the execution of the Transfer Agreement, the Franchise Agreement will terminate automatically, except as provided in Section 9 of the Transfer Agreement. However, the transferor and their principals will still be bound by certain provisions of the Franchise Agreement that naturally survive termination. These include, but are not limited to, obligations related to confidentiality, non-solicitation, and non-competition, as well as the payment of debts and taxes, indemnification, and post-term obligations as detailed in Section 11 of the Franchise Agreement.

Furthermore, the transferor and their principals will continue to be bound by the dispute resolution provisions outlined in Section 14 of the Franchise Agreement. This means that even after the franchise is transferred, the original franchisee and their principals may still be subject to legal obligations and dispute resolution processes related to the original agreement.

In practical terms, this ensures that certain critical aspects of the Belocal franchise relationship, such as protecting confidential information and preventing unfair competition, remain in effect even after a transfer. It also provides a mechanism for resolving any disputes that may arise from the original franchise agreement, offering some protection to Belocal. Prospective franchisees should carefully review these sections to understand their ongoing responsibilities even after transferring the franchise.