What are Transferor and Transferor Principal acknowledging regarding reliance on representations when signing the Belocal Transfer Agreement?

According to Belocal's 2025 Franchise Disclosure Document, when signing the Transfer Agreement, the Transferor and each Transferor Principal acknowledge that they are not relying on any representations or statements made by the Franchisor Releasees or the Transferor Parties, or their representatives, regarding the subject matter, basis, or effect of the Transfer Agreement. This means that the Transferor and Transferor Principal are confirming that their decision to enter into the agreement is based on their own independent assessment and understanding, and not on any claims or promises made by Belocal or the other parties involved in the transfer.

This acknowledgment is significant because it limits the Transferor's ability to later claim that they were misled or induced into signing the agreement based on false or inaccurate information. By explicitly stating that they are not relying on any representations, they are assuming full responsibility for their decision and the consequences that follow. This is a common clause in franchise agreements to protect the franchisor from future disputes related to misrepresentation.

For a prospective Belocal franchisee, this highlights the importance of conducting thorough due diligence and seeking independent legal and financial advice before entering into a Transfer Agreement. It underscores that Belocal is not responsible for ensuring that the Transferor fully understands the implications of the agreement, and the franchisee must rely on their own counsel and investigation. This clause aims to ensure that all parties involved in the transfer are making informed decisions based on their own understanding of the terms and conditions.