Can the Franchisor grant an extension to the six-month deadline for transferring the Belocal franchise after the death or disability of the franchisee?

According to Belocal's 2025 Franchise Disclosure Document, in the event of the death or disability of a franchisee or a principal, the executor, administrator, conservator, or other personal representative is required to transfer the interest to a Belocal-approved party within six months. However, Belocal has the authority to grant a written extension to this six-month deadline. If the transfer is not completed within the initial six-month period or any granted extension, the franchise agreement will automatically terminate.

This provision ensures that in unforeseen circumstances like death or disability, there is a structured process for transferring the franchise to a qualified individual, maintaining the operational standards and brand integrity of Belocal. The possibility of obtaining a written extension from Belocal provides some flexibility, acknowledging that certain transfers may require more time due to legal or administrative complexities.

For a prospective Belocal franchisee, this clause offers a degree of security, knowing that their investment can be transferred in the event of death or disability. However, it's crucial to understand the conditions and limitations surrounding such transfers, including the need for Belocal's approval and the potential for termination if the transfer is not completed in a timely manner. Franchisees should discuss with Belocal under what specific circumstances an extension to the transfer deadline might be granted.