factual

In the event of the death or disability of a Belocal franchisee or principal, how long does their representative have to transfer the interest to an approved party?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (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, if a franchisee or a principal of the franchise experiences death or disability, their representative has a specific timeframe to transfer the franchise interest. The executor, administrator, conservator, or other personal representative is required to transfer the interest to a party approved by Belocal within six months of the death or disability.

This transfer must be completed within this six-month period, unless Belocal grants a written extension. If the transfer is not completed within the given timeframe and no extension is granted, the franchise agreement will automatically terminate. Transfers due to devise or inheritance are subject to all the standard transfer conditions, including Belocal's rights of first offer and first refusal, but the transferor is not required to pay a transfer fee in such cases.

During the period between the death or disability and the completion of the transfer, the Belocal franchised business must continue to operate according to the terms of the franchise agreement. Within 30 days of the death or disability, the representative must appoint a manager for the business, unless a manager was already in place. Any new manager is required to complete Belocal's standard training program at the franchisee's expense and must also sign Belocal's current confidentiality and non-solicitation agreement, complying with all requirements for manager acceptance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.