What happens if execution is levied against a Belocal franchisee's business or property?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
(12) execution is levied against Franchisee's business or property.
C.
Termination on Notice; No Cure.
Franchisor may terminate this Agreement immediately upon written notice to Franchisee, without an opportunity to cure, if:
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if execution is levied against a franchisee's business or property, Belocal has the right to terminate the Franchise Agreement immediately. This termination can occur with written notice and without providing the franchisee an opportunity to remedy the situation.
This provision in the Franchise Agreement means that if a legal judgment results in a seizure of a Belocal franchisee's assets, Belocal can swiftly end the franchise relationship. This could occur due to debt, lawsuits, or other legal issues impacting the franchisee's business or personal assets. The franchisee would lose the right to operate under the Belocal brand and system.
Such a clause is relatively common in franchise agreements, as franchisors want to protect their brand and system from the negative impacts that could arise from a franchisee's financial instability or legal troubles. Franchisees should be aware of this clause and understand the importance of maintaining sound financial practices and adhering to legal requirements to avoid such a situation.