Following the death or disability of a Belocal franchisee or principal, how soon must a manager be appointed for the Franchised Business?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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, in the event of the death or disability of a franchisee or principal, their representative must appoint a manager for the franchised business within a reasonable time, not exceeding 30 days from the date of death or disability. This requirement ensures the continued operation of the Belocal franchise in accordance with the franchise agreement.
The appointed manager must fulfill certain obligations, including completing Belocal's standard training program at the franchisee's expense. Additionally, the manager is required to sign Belocal's current confidentiality and non-solicit agreement and comply with any other requirements Belocal has for manager acceptance. This ensures that the manager is properly trained and legally bound to protect Belocal's interests.
If the franchisee or principal had previously appointed a manager who remains responsible for the day-to-day operations of the franchised business, a new appointment is not necessary. Belocal also retains the option, but not the obligation, to assume management of the franchised business or appoint a party to manage it until the transfer of ownership is completed, providing an additional layer of security for the brand and the business's continuity.