What is the cure period for a material breach of the Intercompany License agreement for Belocal?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Our rights to the Marks and the proprietary System know-how are derived from a non-exclusive, perpetual license ("Intercompany License") between us and The N2 Company. The Intercompany License grants us the right to use the Marks and the proprietary information related to the System, such as the know-how and the Franchise Brand Standards Manual, for the purpose of licensing them to our franchisees and fulfilling our obligations under the Franchise Agreement. The Intercompany License is perpetual and terminable only for material breach of the Intercompany License agreement and only if we do not cure or begin to cure such breach within 90 days after notice. We and The N2 Company may also mutually agree to modify the terms of the Intercompany License. Termination of the Intercompany License will not change the effectiveness of any Franchise Agreement as long as you are not in default under such Franchise Agreement. We know of no other agreements currently in effect which significantly limit our rights to use or license the use of the Marks in any manner material to you.
Source: Item 13 — TRADEMARKS (FDD pages 44–46)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal's rights to use its trademarks and proprietary system know-how are derived from a non-exclusive, perpetual license with The N2 Company, called the "Intercompany License." This license allows Belocal to use the trademarks and proprietary information to license them to its franchisees and fulfill its obligations under the Franchise Agreement.
The Intercompany License is perpetual but can be terminated if there is a material breach of the agreement. If such a breach occurs, Belocal has 90 days after receiving notice to cure the breach or begin taking steps to fix it. Additionally, Belocal and The N2 Company can mutually agree to modify the terms of the Intercompany License.
It is important to note that the termination of the Intercompany License will not affect the validity of any Franchise Agreement, provided the franchisee is not in default under their agreement. This means that even if the license between Belocal and The N2 Company is terminated, franchisees in good standing can continue to operate their franchises.