required_action

In the Belocal Assignment agreement, what is Franchisor obligated to do to assist in the assignment of rights upon termination or expiration of the Franchise Agreement?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

. Upon termination or expiration of the Franchise Agreement, Franchisor will have the right and is hereby empowered to effectuate the assignment of the Listings to itself or to any third party it designates. In the event Franchisor exercises its assignment rights, Franchisee will have no further right, title, or interest in or to the Listings; provided, however, Franchisee shall be obligated to pay all amounts owed in connection with the Listings, including all sums owed to Franchisor, Franchisor's affiliates, or Franchisor's approved suppliers under existing contracts for the Listings, and Franchisee shall immediately, at the Franchisor's request, (i) take any other action as may be necessary to transfer the Listings to the Franchisor or Franchisor's designated agent; (ii) install and maintain on any or all of the Listings, at Franchisee's sole expense, an intercept message, in a form and manner acceptable to Franchisor; (iii) disconnect, cancel, delete, remove, or discontinue the Listings; (iv) relist any Listing in a different location or with a new provider, whether published or online; (v) modify any Listing and any content in such Listing; (vi) provide all login or other access credentials to the Listings; and/or (vii) cooperate with Franchisor or its designated agent in undertaking any or all of the foregoing.

    1. Franchisee appoints Franchisor as Franchisee's attorney-in-fact, to act in Franchisee's place, for the purpose of assigning any Listings covered by the Assignment to Franchisor or Franchisor's designated agent or taking any other actions required of Franchisee under this Agreement. Franchisee grants Franchisor full authority to act in any manner proper or necessary to the exercise of the forgoing powers,

including full power of substitution and execution or completion of any documents required or requested by any Provider to transfer or modify such Listings; and Franchisee ratifies every act that Franchisor may lawfully perform in exercising those powers. This power of attorney shall be effective for a period of two (2) years from the date of expiration or termination of Franchisee's rights under the Franchise Agreement for any reason. Franchisee intends that this power of attorney be coupled with an interest. Franchisee declares this power of attorney to be irrevocable and renounces all rights to revoke it or to appoint another person to perform the acts referred to in this instrument. This power of attorney shall not be affected by the subsequent incapacity of Franchisee. This power is created to secure performance of a duty to Franchisor and is for consideration.

Source: Item 22 — CONTRACTS (FDD page 71)

What This Means (2025 FDD)

According to Belocal's 2025 Franchise Disclosure Document, upon the termination or expiration of the Franchise Agreement, Belocal has the right to effectuate the assignment of the Listings to itself or any third party it designates. The franchisee will have no further rights to the listings once Belocal exercises its assignment rights.

However, the franchisee is obligated to pay all amounts owed in connection with the Listings, including sums owed to Belocal, its affiliates, or approved suppliers under existing contracts. The franchisee must also take actions necessary to transfer the Listings to Belocal or its agent, install intercept messages, disconnect or remove listings, relist or modify listings, and provide access credentials.

Belocal is appointed as the franchisee's attorney-in-fact to assign any Listings to Belocal or its agent and take other required actions. The providers may accept Belocal's written direction, the Franchise Agreement, or the Assignment as proof of Belocal's exclusive rights to the Listings upon termination or expiration. If providers require additional documentation, Belocal's execution on behalf of the franchisee will effectuate the franchisee's consent to the assignment. Both parties agree to perform acts and execute documents necessary to assist in the assignment upon termination or expiration.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.