What is the definition of 'disability' in the context of a 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. This definition also includes situations where the disability prevents the franchisee or principal from fulfilling their obligations under the agreement and manual.

This definition is important because it triggers certain provisions within the franchise agreement, particularly regarding the transfer of the franchise in the event of disability. If a franchisee or principal becomes disabled as defined, their interest in the franchise must be transferred to a party approved by Belocal 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 be operated in accordance with the terms of the franchise agreement. The executor, administrator, conservator, guardian, or other personal representative of the disabled franchisee or principal is required to appoint a manager for the business within 30 days of the disability, unless a manager was previously appointed and remains responsible for the day-to-day operations. Any new manager must complete Belocal's standard training program at the franchisee's expense.

This clause ensures business continuity and protects Belocal's brand standards even when a franchisee or principal is unable to manage the business due to disability. Prospective franchisees should understand these requirements and consider them when evaluating the franchise opportunity, particularly in terms of succession planning and business management.