What happens to the rights granted to a Belocal franchisee upon the expiration or termination of the Franchise Agreement?

According to Belocal's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, all rights granted to the franchisee immediately terminate. The franchisee must also comply with Belocal's instructions for winding down operations, as detailed in the Franchise Brand Standards Manual, and cooperate with Belocal during this period, including attending digital or in-person meetings if requested. The franchisee is obligated to continue operating the franchised business until the transfer closing or expiration date. Failure to comply with wind-down procedures or abandoning the business may result in Wind-Down Damages.

Belocal has the right to effectuate the assignment of the Listings (likely business listings) to itself or a third party upon termination or expiration. The franchisee loses all rights to these Listings but remains obligated to pay any outstanding amounts related to them. The franchisee must also take necessary actions to transfer the Listings, install intercept messages, disconnect or remove Listings, relist them, modify content, and provide access credentials as directed by Belocal.

To facilitate the transfer of Listings, the franchisee appoints Belocal as their attorney-in-fact, granting Belocal the authority to act on their behalf for assigning Listings. This power of attorney is effective for two years from the date of expiration or termination and is considered irrevocable. Belocal can notify lenders, creditors, customers, suppliers, or landlords of the franchisee upon any default or event that could lead to a default, and communicate with them regarding such matters.

These provisions ensure that Belocal can seamlessly take over the Listings and manage the transition of the business after the franchise agreement ends, while also protecting its interests and brand reputation. The franchisee's responsibilities during and after termination are clearly defined to ensure a smooth handover and prevent any disruption to the business.