In the Belocal agreement, are the time periods relating to obligations tolled during any period of noncompliance?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (C) In the event of a breach of this Agreement, Franchisor would be irreparably injured and without an adequate remedy at law and, therefore, upon any such breach or attempted breach of any provision hereof, Franchisor shall be entitled, in addition to any other remedies which it may have at law or in equity, to a temporary and/or permanent injunction and a decree for the specific performance of the terms of this Agreement, without the necessity of showing actual or threatened harm and without being required to furnish a bond or other security. The time periods relating to the obligations described in this Agreement will be tolled during any period of noncompliance.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the time periods relating to obligations within the franchise agreement will be tolled during any period of noncompliance. This means that if a franchisee is not meeting their obligations under the agreement, the clock stops ticking on deadlines or time-sensitive requirements until the noncompliance is resolved.
This provision protects Belocal by ensuring that franchisees cannot benefit from delays caused by their own failure to comply with the agreement. For example, if a franchisee has a certain amount of time to open their franchise location and fails to do so because they are not meeting certain requirements, the time they are in noncompliance will not count towards the deadline.
This type of clause is relatively common in franchise agreements, as it provides an added layer of protection for the franchisor. Prospective Belocal franchisees should understand this provision and ensure they are prepared to meet all obligations outlined in the franchise agreement in a timely manner to avoid any potential issues related to noncompliance.