What happens if a Belocal franchisee, its Principals, or its affiliates have not substantially and timely complied with all the terms and conditions of such agreements during their respective terms?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
These factors may include, but shall not be limited to, the following:
(1) Franchisee, its Principals, and its affiliates shall not be in default under this Agreement, or any other agreement with Franchisor or any of its affiliates, and shall have substantially and timely complied with all the terms and conditions of such agreements during their respective terms, including but not limited to having paid all amounts due;
(2) Franchisor reserves the right to require Franchisee to prepare and furnish to the proposed transferee and/or Franchisor such financial reports and other data relating to the Franchised Business and the Publication as Franchisor deems reasonably necessary or appropriate for transferee and/or Franchisor to evaluate the Franchised Business, the Publication, and the proposed transfer.
Franchisor may review all information regarding the Franchised Business and the Publication that Franchisee provides to the proposed transferee, correct any information that Franchisor believes to be inaccurate, and provide the proposed transferee with copies of any reports that Franchisee has provided to Franchisor or that Franchisor has made regarding the operation of the Franchised Business and/or the Publication.
Franchisee Agrees that Franchisor shall have the right to confer with any proposed transferee and to furnish it with information concerning the Franchised Business, the Publication, and/or the proposed transfer without any liability to Franchisee, except for international misstatements made by Franchisor to transferee.
Any information furnished by Franchisor to any proposed transferee shall be for the sole purpose of permitting the proposed transferee to evaluate the Franchised Business, the Publication, and/or the proposed transfer and must not be construed in any manner or form whatsoever as claims of success or failure of the Franchised Business, the Publication, and/or the proposed transfer;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a franchisee, its principals, and its affiliates do not substantially and timely comply with all the terms and conditions of their agreements, including paying all amounts due, they may be considered in default under the Franchise Agreement or any other agreement with Belocal or its affiliates. This non-compliance can affect the franchisee's ability to transfer the franchise.
Belocal retains the right to review all information regarding the franchised business and the publication that the franchisee provides to a proposed transferee, correct any information that Belocal believes to be inaccurate, and provide the proposed transferee with copies of any reports that the franchisee has provided to Belocal or that Belocal has made regarding the operation of the franchised business and/or the publication. Belocal can also confer with any proposed transferee and furnish them with information concerning the franchised business, the publication, and/or the proposed transfer without any liability to the franchisee, except for intentional misstatements made by Belocal to the transferee.
This information is provided to allow the proposed transferee to evaluate the business and should not be construed as claims of success or failure. Therefore, it is crucial for Belocal franchisees to maintain compliance with all agreements to ensure a smooth transfer process and avoid potential disputes or liabilities.