Is a Belocal franchisee entitled to payments based on past due monies collected after termination, expiration, or transfer of the agreement?

According to Belocal's 2025 Franchise Disclosure Document, a franchisee is not entitled to receive payments based on past due monies associated with the franchised business that are collected by Belocal or its affiliates after the termination, expiration, or transfer of the Franchise Agreement. This means that once the agreement ends, Belocal retains all rights to any outstanding payments, and the franchisee will not receive any portion of these funds.

This policy has significant implications for a prospective Belocal franchisee. It means that the franchisee's income stream ceases entirely upon termination, expiration, or transfer, regardless of any outstanding receivables. Franchisees should, therefore, focus on collecting all due payments before the end of their agreement to maximize their earnings. This also incentivizes franchisees to maintain good relationships with advertisers and clients to ensure timely payments.

This arrangement is not uncommon in franchising, as franchisors often want to ensure a clean break and maintain control over financial matters after a franchise agreement concludes. However, it is crucial for potential franchisees to understand this aspect of the agreement and factor it into their financial planning. Franchisees should consider the potential loss of income from uncollected debts when evaluating the overall profitability and risks associated with the Belocal franchise.