What is the deadline for transferring the Belocal franchise business after the death or disability of the franchisee or its principals, according to the franchise agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
E. Transfer Upon Death or Disability
- (1) Upon the death or disability of Franchisee or a Principal, the executor, administrator, conservator or other personal representative of such person shall transfer such Franchisee's or Principal's interest to a party approved by Franchisor within six months thereof. The transfer must be completed within six months of the death or disability or this Agreement shall automatically terminate, unless Franchisor grants an extension in writing. Such transfers, including, without limitation, transfers by devise or inheritance, shall be subject to all conditions set forth in this Article 9, including Franchisor's right of first offer and right of first refusal, provided that if the transfer is by devise or inheritance, the transferor shall not be obligated to pay a transfer fee. Franchisor's consent to a transfer of any interest, subject to the restrictions of this Article 9 of this Agreement, shall not constitute a waiver of any claims it may have against the assignor, nor shall it be deemed a waiver of Franchisor's right to demand exact compliance with any of the terms or conditions of this Agreement by the transferee. The term "disability" means a mental or physical disability, impairment, or condition that is reasonably expected to prevent or actually does prevent Franchisee or a Principal from operating the Franchised Business in the manner required by this Agreement and the Franchise Brand Standards Manual or from performing its, his, or her obligations under this Agreement and the Franchise Brand Standards Manual.
- (2) During the period between death or disability of Franchisee or a Principal and the completion of the transfer described in Section 9.E(1), the Franchised Business still must be operated in accordance with the terms and conditions of this Agreement. Upon the death or disability of Franchisee or a Principal, the Franchisee's or the Principal's executor, administrator, conservator, guardian, or other personal representative must within a reasonable time, not to exceed 30 days from the date of death or disability, appoint a manager for the Franchised Business (unless Franchisee or the Principal had previously appointed a manager who remains responsible for the day-to-day operation of the Franchised Business). Any new manager must complete Franchisor's standard training program at Franchisee's expense, sign
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, in the event of the death or disability of the franchisee or a principal, their representative has six months to transfer the franchise to a Belocal-approved party. This six-month period starts from the date of death or disability. If the transfer is not completed within this timeframe, the franchise agreement will automatically terminate, unless Belocal grants a written extension.
During the transfer period, the Belocal franchise must continue to operate according to the franchise agreement terms. Within 30 days of the death or disability, the representative must appoint a manager to oversee the business, if one has not already been appointed. This manager is subject to Belocal's standard training program (at the franchisee's expense), must sign a confidentiality and non-solicitation agreement, and must meet Belocal's requirements for managers.
Belocal also has the option, but not the obligation, to assume management of the franchise or appoint someone to manage it until the transfer is complete. The specific terms and conditions for Belocal's involvement are detailed in Section 12.E of the franchise agreement. This provision ensures business continuity and adherence to Belocal standards during a potentially disruptive period.