Following termination of the Belocal franchise agreement, is a franchisee obligated to pay all amounts due under the agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Pay all amounts due under this Agreement;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, the franchisee is obligated to pay all amounts due under the agreement. This means that any outstanding fees, royalties, or other financial obligations that the franchisee owes to Belocal must be settled upon termination.
In addition to paying all outstanding amounts, the franchisee must also cease operating the Franchised Business and discontinue using Belocal's trademarks, copyrighted materials, and confidential information. The franchisee must return all copyrighted materials and confidential information to Belocal or its designated transferee. The franchisee is also required to assign all rights, control, and access to business listings, online presences, and telephone numbers associated with the Franchised Business to Belocal or the transferee, if applicable.
Furthermore, the franchisee is responsible for paying all creditors and suppliers of the Franchised Business and/or the Publication within 15 days after the expiration or termination of the agreement. The franchisee must also pay Belocal for all damages, costs, and expenses, including reasonable attorneys' fees and lost profits, incurred as a result of or subsequent to the termination or expiration of the agreement. This includes costs and expenses related to obtaining injunctive or other relief for the enforcement of any provisions outlined in the agreement.