What conditions must a Belocal franchisee meet for the franchisor to approve a transfer?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| l. Franchisor's approval of transfer by franchisee | Section 9.B. | You must notify us with a notice of transfer, and we must give written consent to a transfer by you or your Principals. All transfers must meet certain conditions. |
| m. Conditions for franchisor approval of transfer | Section 9.B. | Conditions include the following: you must pay all amounts due; not be in default; sign a general release (subject to state law); pay a transfer fee; and remain liable for pre-transfer obligations. Any Transferee must meet our criteria, complete required training, meet our guaranty obligations, make certain representations, and enter into our then-current franchise agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 49–55)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee needs to meet several conditions to get approval for a transfer of their franchise. Belocal requires that the franchisee provide notice of the transfer and receive written consent from them.
Specific conditions include paying all outstanding amounts owed to Belocal, not being in default of the franchise agreement, and signing a general release (subject to state law). The franchisee must also pay a transfer fee and will remain liable for any obligations that existed before the transfer.
Furthermore, any potential transferee must meet Belocal's criteria, complete the required training program, fulfill Belocal's guaranty obligations, make certain representations to Belocal, and agree to enter into the then-current franchise agreement. These stipulations ensure that any new franchisee is well-prepared and committed to upholding Belocal's standards and practices.