Can Belocal change a franchisee's territory?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the sole discretion to change your Territory, including its size, shape, boundaries, and population, upon ninety (90) days' notice to you.
Your Territory will be defined by geographic boundaries or descriptions we select. We do not grant any minimum territory. The actual size of the Territory will vary depending upon the availability of markets, our long-range plans, your financial and operational resources, and market conditions. A written description of the Territory will be inserted in Attachment B to the Franchise Agreement before you sign the Franchise Agreement. The boundaries used to define the Territory will be geographic boundaries as configured on the effective date of the Franchise Agreement, which may be described as certain neighborhoods, subdivisions, or communities, or a specific home count in an area, as determined by us.
Source: Item 12 — TERRITORY (FDD pages 42–44)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal has the authority to modify a franchisee's territory. Specifically, Belocal retains the sole discretion to change the territory's size, shape, boundaries, and population.
This modification can occur at any time during the franchise agreement, provided that Belocal gives the franchisee ninety (90) days' notice before implementing the change. The territory is initially defined by geographic boundaries or descriptions selected by Belocal, which may include specific neighborhoods, subdivisions, communities, or a specific home count in an area.
This clause in the franchise agreement means that a Belocal franchisee's territory is not guaranteed to remain constant throughout the term of the agreement. Belocal can adjust the territory based on market conditions or other factors, which could potentially impact the franchisee's business operations and revenue. Prospective franchisees should carefully consider this aspect and its potential implications before investing in a Belocal franchise.