Under what circumstances does the release in paragraph 5(b) of the Belocal Transfer Agreement NOT apply?

According to Belocal's 2025 Franchise Disclosure Document, the release in paragraph 5(b) of the Transfer Agreement does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its associated rules. This exception is specifically for transfers occurring in Washington state.

This means that if a Belocal franchisee in Washington has a claim against Belocal related to violations of the Washington Franchise Investment Protection Act, the standard release included in the Transfer Agreement will not prevent them from pursuing that claim. The Act is designed to protect franchisees from unfair practices by franchisors, so this provision ensures that franchisees in Washington retain their rights under that law even when transferring their franchise.

For prospective Belocal franchisees, particularly those in Washington, this is an important protection to be aware of. It ensures that the transfer process does not inadvertently waive their rights under state franchise law. Franchisees in other states may not have this specific protection, as the FDD indicates this clause is only applicable in Washington.