When does the Belocal franchise agreement become effective?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
This N2 Franchisee Services Agreement (this "Agreement") dated as of [INSERT DATE] (the "Effective Date"), is entered into by and between The N2 Company, a Delaware corporation, with its principal place of business located in Irving, Texas ("N2"), and [FRANCHISEE NAME] (the "Franchisee").
- M. Agreement Effective Upon Execution by Franchisor. This Agreement shall not become effective until signed by an authorized representative of Franchisor.
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the dates set forth below, each intending to be legally bound by its terms.
N2 Franchising, Inc. [Insert name of Franchisee entity here] JP Hamel, CEO Title: Date:
ATTACHMENT A DEFINITIONS
"Franchise Brand Standards Manual" means Franchisor's confidential operations manual, which may consist of one or more manuals, containing Franchisor's mandatory and suggested standards, specifications, and operating procedures relating to the operation of the Franchised Business and Franchisee's obligations under this Agreement. The term also includes alternative or supplemental means of communicating information to Franchisee, including bulletins, video files, audio files, CD ROMs, and electronic communications.
"Advertising Value" means the greater of (1) the minimum market value of each ad, as Franchisor or its affiliate determines, in its sole discretion; (2) the contract price for which the print advertising actually sold, which Franchisee can determine; (3) the cash value of services that Franchisee barters in exchange for print advertising; or (4) the combined amount/value of (2) and (3), if applicable.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the N2 Franchisee Services Agreement becomes effective as of the date listed on the agreement. The agreement is dated as of '[INSERT DATE]' and this date is referred to as the "Effective Date". However, the agreement does not become effective until it is signed by an authorized representative of Belocal.
For a prospective franchisee, this means that the franchise agreement is not binding until Belocal signs it, even if the franchisee has already signed. The franchisee's obligations and rights under the agreement do not begin until this point. The agreement term begins on the Effective Date and continues for three years from that date, unless terminated earlier.
It is important for the franchisee to note the Effective Date in the agreement and ensure that it aligns with their understanding of when the franchise relationship is intended to begin. Additionally, the franchisee must commence business with the public no later than 60 days after the Effective Date, unless a written extension is obtained from Belocal. This requirement ensures that the franchisee begins operations in a timely manner after the agreement becomes effective.