What form of franchise agreement must the transferee of a Belocal franchise execute?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) The transferee shall execute Franchisor's then-current form of franchise agreement for a term ending on the expiration date of this Agreement.
The new franchise agreement shall supersede this Agreement in all respects, and its terms may differ from the terms of this Agreement, including higher fees, but the transferee shall not be required to pay an initial franchise fee.
If the transferee is a corporation, partnership, limited liability company, or other entity, those of transferee's principals who are designated as principals by Franchisor must also execute such agreement and guarantee the performance thereof;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a transferee of a Belocal franchise must execute the franchisor's then-current form of franchise agreement. This new agreement will have a term ending on the expiration date of the original franchise agreement.
This new franchise agreement completely replaces the original agreement. The terms of the new agreement may differ from the original, potentially including higher fees. However, the transferee is not required to pay an initial franchise fee.
If the transferee is a corporation, partnership, limited liability company, or other entity, those principals of the transferee designated by Belocal must also execute the agreement and guarantee its performance. This ensures that the obligations are fully secured, regardless of the business structure of the transferee.