Under the Belocal franchise agreement, what is required of the parties signing the agreement regarding their authority to enter into it?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the dates set forth below, each intending to be legally bound by its terms.
N2 Franchising, Inc. [Insert name of Franchisee entity here] JP Hamel, CEO Title: Date:
-
- [OMIT FOR WASHINGTON FRANCHISEES; FOR USE IN STATES OTHER THAN WASHINGTON:] Acknowledgments Regarding Releases. By affixing its signature to this Agreement, Assignor acknowledges that it has carefully read and fully understands the provisions of this Agreement, including, specifically, the release of claims set forth in Sections 5. of this Agreement, and that its release of such claims is knowing and voluntary. Assignor acknowledges that it has had a reasonable opportunity to consult with an attorney prior to executing this Agreement and that it has executed this Agreement voluntarily. Assignor acknowledges that Franchisor has advised it to consult with an attorney before executing this Agreement. Assignor represents that it does not rely, and has not relied upon, any representation or statement made by any of the Released Parties or any of their representatives with regard to the subject matter, basis, or effect of this Agreement.
- M. Agreement Effective Upon Execution by Franchisor. This Agreement shall not become effective until signed by an authorized representative of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement includes a statement confirming that the parties signing the agreement are intending to be legally bound by its terms. Specifically, the document states that the parties have duly executed the agreement on the dates provided. This indicates that the individuals signing on behalf of both Belocal and the franchisee are asserting they have the authority to do so.
For Belocal, the agreement becomes effective only when signed by an authorized representative. This clause protects Belocal by ensuring that the agreement is officially endorsed by someone with the power to bind the company. The franchisee also needs to be aware of this clause, as it clarifies when the agreement is fully in force.
In addition, the agreement includes an acknowledgement by the assignor (in a transfer context) that they have carefully read and fully understand the provisions of the agreement, including the release of claims. The assignor also acknowledges that they had a reasonable opportunity to consult with an attorney and that they are executing the agreement voluntarily, not relying on any representations made by the released parties or their representatives. This acknowledgement is particularly important in the context of a transfer agreement, as it ensures that the assignor is fully aware of the implications of releasing claims and entering into the agreement.
Overall, these clauses are standard in franchise agreements to ensure that all parties involved are fully aware of their rights and obligations, and that they have the legal authority to enter into the agreement. Prospective Belocal franchisees should carefully review these sections with their own legal counsel to fully understand their implications.