After the death or disability of a Belocal franchisee or principal, is Belocal obligated to assume management of the Franchised Business?

According to Belocal's 2025 Franchise Disclosure Document, Belocal is not obligated to assume management of a franchised business following the death or disability of a franchisee or principal. However, Belocal has the option to do so.

Specifically, the FDD states that Belocal "may, but shall not be obligated to, assume the management of the Franchised Business (or appoint a party to assume its management) until the transfer pursuant to Section 9.E(1) is completed." This indicates that while Belocal has the right to step in and manage the business, it is not a requirement. The terms and conditions for exercising this right are detailed in Section 12.E of the agreement.

This arrangement provides Belocal with flexibility in handling such situations, allowing them to protect the brand and ensure continued operation of the franchise if they deem it necessary. However, it also means that the responsibility for managing the business during the transfer period primarily falls on the franchisee's or principal's executor, administrator, or other personal representative, who must appoint a manager within 30 days of the death or disability. This manager must complete Belocal's training program and meet their requirements.

For a prospective Belocal franchisee, this means understanding that in the event of death or disability, their estate or representative will need to quickly find a qualified manager to run the business, or Belocal may step in at their option. It's crucial to review Section 12.E to fully understand the conditions under which Belocal might exercise its step-in rights and the associated costs, including a potential management fee.