What factors can Belocal consider when deciding whether to approve a proposed transfer?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor does not exercise its rights under Section 9.C or Section 9.D, the decision as to whether to approve a proposed transfer shall be made by Franchisor in its sole discretion and shall include numerous factors deemed relevant by Franchisor.
These factors may include, but shall not be limited to, the following:
(1) Franchisee, its Principals, and its affiliates shall not be in default under this Agreement, or any other agreement with Franchisor or any of its affiliates, and shall have substantially and timely complied with all the terms and conditions of such agreements during their respective terms, including but not limited to having paid all amounts due;
(2) Franchisor reserves the right to require Franchisee to prepare and furnish to the proposed transferee and/or Franchisor such financial reports and other data relating to the Franchised Business and the Publication as Franchisor deems reasonably necessary or appropriate for transferee and/or Franchisor to evaluate the Franchised Business, the Publication, and the proposed transfer.
Franchisor may review all information regarding the Franchised Business and the Publication that Franchisee provides to the proposed transferee, correct any information that Franchisor believes to be inaccurate, and provide the proposed transferee with copies of any reports that Franchisee has provided to Franchisor or that Franchisor has made regarding the operation of the Franchised Business and/or the Publication.
Franchisee Agrees that Franchisor shall have the right to confer with any proposed transferee and to furnish it with information concerning the Franchised Business, the Publication, and/or the proposed transfer without any liability to Franchisee, except for international misstatements made by Franchisor to transferee.
Any information furnished by Franchisor to any proposed transferee shall be for the sole purpose of permitting the proposed transferee to evaluate the Franchised Business, the Publication, and/or the proposed transfer and must not be construed in any manner or form whatsoever as claims of success or failure of the Franchised Business, the Publication, and/or the proposed transfer;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal has the sole discretion to decide whether to approve a proposed transfer. These factors include, but are not limited to, whether the franchisee, its principals, and its affiliates are in default under the agreement or any other agreement with Belocal or its affiliates. Belocal will also consider if the franchisee has substantially and timely complied with all the terms and conditions of such agreements during their respective terms, including having paid all amounts due.
Belocal reserves the right to require the franchisee to prepare and furnish financial reports and other data relating to the franchised business and the publication as Belocal deems reasonably necessary or appropriate for the transferee and/or Belocal to evaluate the franchised business, the publication, and the proposed transfer. Belocal may review all information regarding the franchised business and the publication that the franchisee provides to the proposed transferee, correct any information that Belocal believes to be inaccurate, and provide the proposed transferee with copies of any reports that the franchisee has provided to Belocal or that Belocal has made regarding the operation of the franchised business and/or the publication.
Belocal has the right to confer with any proposed transferee and furnish it with information concerning the franchised business, the publication, and/or the proposed transfer without any liability to the franchisee, except for intentional misstatements made by Belocal to the transferee. Any information furnished by Belocal to any proposed transferee is solely for permitting the proposed transferee to evaluate the franchised business, the publication, and/or the proposed transfer and must not be construed as claims of success or failure of the franchised business, the publication, and/or the proposed transfer.