Does the Belocal franchise agreement allow for unilateral amendments by the Franchisor?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
In such circumstances, Franchisee's use of the additional or substitute proprietary marks and copyrighted materials shall be governed by the terms of this Agreement.
Franchisee shall promptly comply with each such addition, change, revision, discontinuation, or substitution and bear all expenses associated therewith.
Franchisor shall not be obligated to compensate Franchisee for any costs or expenses incurred by Franchisee in connection with any such addition, change, revision, discontinuation, or substitution.
9. TRANSFER AND ASSIGNMENT
A. By Franchisor.
- (1) Franchisor has the right to transfer or assign this Agreement and all or any part of its rights or obligations herein to any person or legal entity without prior notice to, or the consent of, Franchisee. Upon any such transfer or assignment, the transferee or assignee shall be solely responsible for all of Franchisor's obligations arising hereunder subsequent to the transfer or assignment.
- (2) If Franchisor transfers or assigns this Agreement to an unaffiliated third-party purchaser in connection with the sale of the entire N2 publication(s) franchising business, and if, as of the date of such transfer or assignment, the remaining Term of this Agreement is less than 540 days, then, prior
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchisor has the right to make changes to the franchise agreement under certain circumstances. Specifically, Belocal can add, change, revise, discontinue, or substitute proprietary marks and copyrighted materials. The franchisee is obligated to comply promptly with these changes and bear any associated expenses.
Belocal is not obligated to compensate the franchisee for any costs incurred due to these changes. This means a franchisee may have to invest additional funds to comply with changes Belocal makes to its branding or materials.
Additionally, Belocal has the right to transfer or assign the franchise agreement to another party without needing the franchisee's consent or even providing prior notice. However, if Belocal sells the entire franchising business to an unaffiliated third party and the remaining term of the agreement is less than 540 days, the franchisee has the option to extend the agreement to expire 540 days from the closing date of the transfer. This clause does not limit Belocal's right to transfer or assign the agreement as initially stated.
It is important for a prospective Belocal franchisee to understand these terms, as they give Belocal considerable latitude to modify the franchise system and transfer the agreement, potentially impacting the franchisee's business and financial obligations.