What happens if a Belocal franchisee is charged with a felony?

According to Belocal's 2025 Franchise Disclosure Document, if a franchisee or any principal involved with the franchise is charged with a felony, or pleads nolo contendere to a felony, Belocal has grounds to terminate the franchise agreement. This condition applies regardless of whether the charge occurs before or after the effective date of the agreement.

This clause protects Belocal's brand reputation and ensures that its franchisees maintain a high standard of conduct. The FDD also states that Belocal can terminate the agreement if the franchisee becomes known to communities, industry groups, or advertisers as being of bad moral character, disparages, embarrasses, or tarnishes Belocal's reputation, or fails to comport itself at all times in accordance with the highest standards of conduct and behavior, consistent with its responsibilities as a franchisee.

For a prospective Belocal franchisee, this means that any past or pending felony charges or pleas could impact their eligibility to become a franchisee. Furthermore, any such charges or pleas during the term of the franchise agreement could lead to termination. This highlights the importance of maintaining a clean legal record and adhering to high ethical standards while operating a Belocal franchise.