In the Belocal Transfer Agreement, who are considered 'Franchisor Releasees' that are released by the Transferor?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Transferor and each Transferor Principal, for themselves and on behalf of all other persons or entities acting on any of their behalf or claiming under any of them ("Releasing Parties"), hereby irrevocably and unconditionally release, acquit, and forever discharge Franchisor, Franchisor's predecessors, parents, subsidiaries, and affiliates, 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, past and present, and all persons acting by, through, under or in concert with any of them ("Franchisor Releasees") or any of them, from all actions, causes of action, suits, debts, liens, obligations, promises, liabilities, claims, rights, demands, damages, controversies, losses, costs, and expenses (including attorneys' fees and costs actually incurred), known or unknown, suspected or unsuspected, fixed or contingent, which any of them now has, owns, holds, claims to have, claims to own, or claims to hold, or at any time heretofore had, owned, held, claimed to have, claimed to own, or claimed to hold (collectively, "claims") against each or any of the Franchisor Releasees, including but not limited to those arising out of or relating to the Franchise Agreement and the relationships created thereby, any other agreement between any Franchisor Releasee on the one hand and any Releasing Party on the other hand, and the offer or sale of the N2 publication franchise opportunity.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Transferor, when transferring their franchise, releases specific parties known as 'Franchisor Releasees.' These include Belocal itself, along with its predecessors, parents, subsidiaries, and affiliates.
Furthermore, the release extends to the officers, directors, shareholders, partners, managers, members, agents, representatives, independent contractors, servants, employees, attorneys, accountants, guarantors, successors, and assigns of Belocal and its related entities. This encompasses both their past and present roles, whether in a corporate or individual capacity. The release also covers all individuals acting by, through, under, or in concert with any of the aforementioned parties.
This broad definition of 'Franchisor Releasees' means that the Transferor is giving up any and all claims against a wide range of individuals and entities associated with Belocal. This is a standard practice in franchise transfer agreements, intended to protect the franchisor from future liabilities related to the transferring franchisee's operation of the business. A prospective franchisee should carefully consider the implications of this release and consult with an attorney to fully understand the scope of the claims being waived.