What must happen to the Belocal franchised business between the death or disability of the franchisee or principal and the completion of the transfer?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) During the period between death or disability of Franchisee or a Principal and the completion of the transfer described in Section 9.E(1), the Franchised Business still must be operated in accordance with the terms and conditions of this Agreement. Upon the death or disability of Franchisee or a Principal, the Franchisee's or the Principal's executor, administrator, conservator, guardian, or other personal representative must within a reasonable time, not to exceed 30 days from the date of death or disability, appoint a manager for the Franchised Business (unless Franchisee or the Principal had previously appointed a manager who remains responsible for the day-to-day operation of the Franchised Business). Any new manager must complete Franchisor's standard training program at Franchisee's expense, sign
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, during the period between the death or disability of the franchisee or a principal and the completion of the transfer of the Belocal franchise, the franchised business must continue to be operated in accordance with the terms and conditions of the franchise agreement.
Within a reasonable time, not exceeding 30 days from the date of death or disability, the executor, administrator, conservator, guardian, or other personal representative must appoint a manager for the Belocal franchised business. This requirement can be waived if a manager was previously appointed and remains responsible for the day-to-day operations. Any newly appointed manager is required to complete Belocal's standard training program at the franchisee's expense. The new manager must also sign Belocal's current confidentiality and non-solicitation agreement and comply with any other requirements Belocal has for manager acceptance.
Belocal also has the option, but not the obligation, to assume management of the franchised business or appoint a party to manage it until the transfer is completed. The terms and conditions for Belocal's right to step in are detailed in Section 12.E of the franchise agreement. Failure to transfer the Belocal franchise within six months of the death or disability of the franchisee or principal may result in termination of the agreement, unless Belocal grants a written extension.