What happens in the event of the death or disability of a Belocal franchisee or principal?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| p. Death or disability of franchisee | Section 9.E. | If the Franchisee or a Principal dies or is disabled, the interest of such Franchisee or Principal must be transferred within six months. Franchisor has a step-in right upon death or disability. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 49–55)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Section 9.E. of the Franchise Agreement addresses the death or disability of a franchisee or principal. In such an event, the interest of the franchisee or principal must be transferred within six months.
Belocal also retains a step-in right upon the death or disability of the franchisee or principal. This means that Belocal has the option to take over the operations of the franchise temporarily or permanently to ensure the continuity of the business.
This provision is important for prospective franchisees as it outlines the procedure to be followed in unforeseen circumstances such as death or disability, ensuring a smooth transition of ownership and continued operation of the Belocal franchise. Franchisees should understand the implications of this clause and consider it in their business and estate planning.