Under the Belocal Assignment agreement, do the agreements, covenants, representations, and warranties survive the signing of the Assignment?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Survival. All covenants, representations, warranties, and agreements of the parties shall survive execution and delivery of this Agreement and shall continue until such time as all the obligations of the parties hereto shall have lapsed in accordance with their respective terms or shall have been discharged in full.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the covenants, representations, warranties, and agreements made by the parties involved in the Assignment agreement do indeed survive the execution and delivery of the agreement. These obligations remain in effect until all duties are fulfilled or have lapsed according to their terms. This ensures that all parties remain accountable for their commitments even after the initial signing of the agreement.
For a prospective Belocal franchisee, this survival clause offers a level of protection and assurance. It means that the franchisor and franchisee are held to their promises and obligations throughout the term of the agreement, providing a stable and predictable business relationship. This is a common practice in franchising, as it ensures that both parties are committed to the long-term success of the franchise.
However, it is important for a potential Belocal franchisee to carefully review all covenants, representations, warranties, and agreements within the Assignment agreement. Understanding the specific terms and conditions that survive the execution of the agreement is crucial. This knowledge will help the franchisee to fully grasp their ongoing responsibilities and rights, and to avoid any potential disputes or misunderstandings in the future.