Under the Belocal franchise agreement, what right did the Assignor obtain?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Franchisor and Assignor entered into that certain franchise agreement dated [Franchise Agreement Date], ("Franchise Agreement"), pursuant to which Assignor obtained the right and undertook the obligation to operate an independently owned and operated franchised business ("Franchised Business").
- B. Assignor is the sole owner of Assignee and desires to assign to Assignee all of Assignor's rights and obligations under the Franchise Agreement and Assignor's rights and title to the Franchised Business.
- C. Franchisor has agreed to consent to the assignment and assumption set forth in this Agreement, pursuant to the terms and conditions set forth herein.
In consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged, and intending to be legally bound, the parties agree as follows:
AGREEMENT
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- Assignment. Assignor hereby assigns and transfers to Assignee all of its right, title, and interest in and to the Franchise Agreement as of this Agreement's Effective Date.
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- Assumption. Assignee hereby assumes all of Assignor's obligations, agreements, commitments, duties, and liabilities under the Franchise Agreement and agrees to be bound by and observe and faithfully perform all of the obligations, agreements, commitments, and duties of Assignor under the Franchise Agreement with the same force and effect as if the Franchise Agreement had been originally written with Assignee as Franchisee.
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- Amendment to Franchise Agreement.
- a. All references to [Assignor Name] as Franchisee in the Franchise Agreement are hereby deleted and replaced with [Assignee Name].
- b. Attachment E to the Franchise Agreement is hereby deleted in its entirety and replaced with the Amended Attachment E attached hereto.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Assignor in a franchise agreement obtained the right and obligation to operate an independently owned and operated franchised business. This right was initially granted through a franchise agreement between Belocal and the Assignor.
The Assignor's role is then to transfer all of their rights, title, and interest in the Franchise Agreement to an Assignee. This transfer includes all obligations, agreements, commitments, duties, and liabilities initially held by the Assignor under the original Franchise Agreement. The Assignee effectively steps into the shoes of the Assignor, assuming all responsibilities as if they were the original franchisee.
This process requires Belocal's consent, ensuring that the new franchisee (Assignee) meets the brand's standards and is capable of fulfilling the franchise obligations. The agreement also involves amending the original franchise agreement to reflect the change in franchisee, specifically replacing the Assignor's name with the Assignee's name in all relevant documents.