Is failing to interact in a professional manner with other Belocal franchisees considered a curable default?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
(9) Franchisee or any Principal fails to interact in a professional manner with any other franchisee, current or prospective advertiser or client, or any member of any Community or Industry Group;
D.
Termination on Notice; Opportunity to Cure.
Except as provided in Sections 10.B. and 10.C. of this Agreement, upon any default by Franchisee which is capable of being cured, Franchisor may terminate this Agreement by giving Franchisee written notice of termination stating the nature of the default and the time period within which the default must be cured ("Cure Period").
Franchisee may avoid termination by immediately initiating a remedy to cure such default and curing it to Franchisor's satisfaction within the Cure Period (or any longer period that applicable law may require).
If any such default is not cured within the Cure Period, this Agreement shall terminate without further notice to Franchisee effective immediately upon the expiration of the Cure Period.
Unless included in the provision below, the Cure Period shall be specified in Franchisor's notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a franchisee or any principal fails to interact in a professional manner with any other franchisee, current or prospective advertiser or client, or any member of any Community or Industry Group, it is considered a curable default. This means that Belocal would provide written notice of the default and a period to cure it.
To avoid termination of the franchise agreement, the franchisee must immediately begin to remedy the default and successfully cure it to Belocal's satisfaction within the given cure period. The cure period will be specified in the notice provided by Belocal to the franchisee. If the default is not cured within this period, the franchise agreement will terminate immediately upon the expiration of the cure period without any further notice.
This aspect of the franchise agreement emphasizes the importance of maintaining professional relationships within the Belocal network and with external stakeholders. Franchisees should ensure that they and their principals conduct themselves professionally in all interactions to avoid receiving a notice of default and potential termination of the agreement.