How can a Belocal franchisee avoid termination after receiving a notice of default?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. Except as provided in Sections 10.B. and 10.C. of this Agreement, upon any default by Franchisee which is capable of being cured, Franchisor may terminate this Agreement by giving Franchisee written notice of termination stating the nature of the default and the time period within which the default must be cured ("Cure Period"). Franchisee may avoid termination by immediately initiating a remedy to cure such default and curing it to Franchisor's satisfaction within the Cure Period (or any longer period that applicable law may require). If any such default is not cured within the Cure Period, this Agreement shall terminate without further notice to Franchisee effective immediately upon the expiration of the Cure Period. Unless included in the provision below, the Cure Period shall be specified in Franchisor's notice to Franchisee. Defaults which are susceptible of cure hereunder may include, but are not limited to, the following:
- (1) Franchisee does not meet all content, review, approval, processing and other publication deadlines for the Publication, including but not limited to the deadline to provide approval(s) on or before the Franchisee's assigned Commission date, or such other date as Franchisor may specify from time to time;
- (2) Franchisee does not operate its Franchised Business in accordance with all of Franchisor's standards and procedures, including without limitation, those set forth in Sections 5.B. and 5.E. of this Agreement and those set forth in Franchisor's Franchise Brand Standards Manual;
- (3) Franchisee fails to maintain the Publication for the Territory that contains substantive, current, community-specific, or industry-specific information in accordance with Franchisor's standards and procedures;
- (4) Franchisee fails to submit content on or before the applicable deadline or fails to submit sufficient content;
- (5) Franchisee or any Principal fails to return any Returnable Commissions to Franchisor within 15 days after receiving notice from Franchisor that such Returnable Commissions are due;
- (6) Franchisee fails to pay when due any fee, expense, charge, or other amount due and owing to any supplier or creditor of Franchisee;
- (7) Franchisee fails to pay its Independent Staff in accordance with applicable federal, state, and local labor and/or employment and payday laws;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee can avoid termination after receiving a written notice of default from Belocal if the default is capable of being cured. Belocal will provide a written notice of termination stating the nature of the default and the time period within which it must be cured, referred to as the "Cure Period."
To avoid termination, the franchisee must immediately begin to remedy the default and successfully cure it to Belocal's satisfaction within the Cure Period. The Cure Period will be specified in Belocal's notice to the franchisee, unless otherwise included in the provision. If the franchisee does not cure the default within the Cure Period, the franchise agreement will terminate immediately upon the expiration of the Cure Period, without any further notice.
Examples of defaults that are susceptible to being cured include not meeting content deadlines for the Publication, not operating the Franchised Business according to Belocal's standards and procedures, failing to maintain the Publication with substantive information, failing to submit content on time or submitting insufficient content, failing to return Returnable Commissions within 15 days of notice, failing to pay suppliers or creditors, and failing to pay Independent Staff according to labor laws. It is important to note that some defaults are not capable of being cured, which would lead to immediate termination without an opportunity to cure the default.