What constitutes 'disability' according to the Belocal franchise agreement?

According to Belocal's 2025 Franchise Disclosure Document, the term 'disability' is specifically defined within the context of the franchise agreement. It refers to a mental or physical disability, impairment, or condition that is reasonably expected to prevent, or actually does prevent, the franchisee or a principal from operating the franchised Belocal business as required by the agreement and the Franchise Brand Standards Manual. It also includes situations where the franchisee or principal is unable to fulfill their obligations under the agreement and manual.

This definition is important because it triggers certain obligations and potential actions related to the transfer of the franchise. If a franchisee or principal experiences such a disability, their representative (executor, administrator, etc.) is required to transfer the interest to a Belocal-approved party within six months. Failure to complete the transfer within this timeframe, unless an extension is granted in writing by Belocal, can result in automatic termination of the franchise agreement.

During the period between the disability and the completion of the transfer, the Belocal franchised business must continue to operate according to the terms of the agreement. The representative is required to appoint a manager within 30 days to oversee the business's operations, ensuring continuity and adherence to Belocal's standards. This manager may need to complete Belocal's standard training program at the franchisee's expense.

This clause protects Belocal by ensuring that the business continues to operate according to its standards even if the franchisee becomes disabled. It also places a significant responsibility on the franchisee or principal to have a plan in place for managing the business in the event of a disability, including identifying a potential successor or manager and understanding the financial implications of training a new manager.