What happens if a Belocal franchisee materially breaches the agreement and the breach is capable of cure?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided in Sections 10.B. and 10.C. of this Agreement, upon any default by Franchisee which is capable of being cured, Franchisor may terminate this Agreement by giving Franchisee written notice of termination stating the nature of the default and the time period within which the default must be cured ("Cure Period").
Franchisee may avoid termination by immediately initiating a remedy to cure such default and curing it to Franchisor's satisfaction within the Cure Period (or any longer period that applicable law may require).
If any such default is not cured within the Cure Period, this Agreement shall terminate without further notice to Franchisee effective immediately upon the expiration of the Cure Period.
Unless included in the provision below, the Cure Period shall be specified in Franchisor's notice to Franchisee.
Defaults which are susceptible of cure hereunder may include, but are not limited to, the following:
- (1) Franchisee does not meet all content, review, approval, processing and other publication deadlines for the Publication, including but not limited to the deadline to provide approval(s) on or before the Franchisee's assigned Commission date, or such other date as Franchisor may specify from time to time;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a franchisee commits a default that is capable of being cured, Belocal can terminate the franchise agreement by providing written notice. This notice will specify the nature of the default and the period within which it must be cured, referred to as the "Cure Period."
To avoid termination, the franchisee must immediately begin to remedy the default and successfully cure it to Belocal's satisfaction within the Cure Period. The Cure Period will be specified in Belocal's notice to the franchisee, unless otherwise required by applicable law. If the franchisee fails to cure the default within the Cure Period, the franchise agreement will terminate immediately upon the expiration of the Cure Period, without any further notice from Belocal.
Examples of defaults that are susceptible to cure include failing to meet content, review, approval, processing, and other publication deadlines for the Publication, including the deadline to provide approvals on or before the franchisee's assigned Commission date, or such other date as Belocal may specify from time to time. This means a Belocal franchisee needs to be diligent in meeting deadlines to avoid potential termination of the agreement.