Who is Belocal authorized to notify in the event of a default by the franchisee?

According to Belocal's 2025 Franchise Disclosure Document, Belocal is authorized to notify specific parties in the event of a franchisee default. Specifically, Belocal can notify any lender, creditor, customer, supplier, or landlord of the franchisee or the franchised business upon the occurrence of any default. This also extends to any event or circumstance that, with notice or the passage of time, could constitute a default.

This clause in the franchise agreement allows Belocal to protect its interests and the integrity of its brand by communicating directly with parties connected to the franchisee's business. This communication can address defaults or potential defaults, ensuring that these stakeholders are informed about the situation. This could involve informing a bank about a franchisee's failure to meet financial obligations, notifying suppliers of potential payment issues, or informing landlords of lease violations.

For a prospective Belocal franchisee, this means that their financial and business relationships are subject to scrutiny by Belocal in the event of a default or potential default. It is crucial for franchisees to maintain good standing with their lenders, creditors, customers, suppliers, and landlords to avoid triggering such notifications. Franchisees should be aware that Belocal has the right to communicate with these parties regarding any issues that could impact the franchise's operations or financial stability. This provision underscores the importance of financial responsibility and adherence to the franchise agreement to maintain a positive relationship with Belocal and its stakeholders.