What is Belocal's sole liability and the franchisee's sole remedy for breach of the limited warranty?

According to Belocal's 2025 Franchise Disclosure Document, Belocal's sole liability and the franchisee's sole remedy for breach of the limited warranty is limited to the portion of fees previously paid by the franchisee as of the date of termination corresponding to the defective services. This means that if Belocal breaches its limited warranty, the franchisee's only recourse is to recover a portion of the fees they've already paid, specifically those related to the deficient services, up to the termination date.

This limitation on liability has significant implications for prospective Belocal franchisees. It means that franchisees cannot seek compensation for any other losses or damages they might incur as a result of the breach, such as lost profits, consequential damages, or incidental expenses. The franchisee bears the risk of any losses beyond the fees paid for the defective services.

Such limitations of liability are relatively common in franchise agreements. Franchisees should carefully consider this provision and evaluate whether the potential remedy is sufficient to cover potential losses in the event of a breach of warranty. It is important for prospective franchisees to understand the scope of the limited warranty and the potential financial risks associated with this limitation of liability before investing in a Belocal franchise.