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If a Belocal franchisee executed Attachment H Test Publications Amendment, what language from Section 10.C of the Agreement (Termination on Notice; No Cure) is deleted?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

  • i. The following language from Section 10.C of the Agreement (Termination on Notice; No Cure), if added to the Agreement because Franchisee executed Attachment H Test Publications Amendment, is hereby deleted:

Franchisor determines, in its sole discretion, that it will no longer publish or support the publishing of the Test Publication.

Source: Item 22 — CONTRACTS (FDD page 71)

What This Means (2025 FDD)

According to Belocal's 2025 Franchise Disclosure Document, if a franchisee executes Attachment H Test Publications Amendment, specific language is deleted from Section 10.C of the Franchise Agreement, which deals with termination on notice without an opportunity to cure. The deleted language states: "Franchisor determines, in its sole discretion, that it will no longer publish or support the publishing of the Test Publication." This means that Belocal retains the right to cease publishing or supporting the Test Publication without penalty or compensation to the franchisee.

This deletion is significant because it gives Belocal considerable flexibility regarding the Test Publication. The franchisee needs to understand that Belocal can discontinue the publication at any time, which could directly impact the franchisee's business operations and revenue. This clause underscores the experimental nature of the Test Publication, as highlighted in the amendment, where Belocal is assessing the publication's viability and financial parameters.

Prospective franchisees should carefully consider the implications of this clause before entering into the agreement, especially if their business model heavily relies on the Test Publication. It would be prudent to discuss with Belocal the conditions under which the publication might be discontinued and what support or alternatives would be offered to the franchisee in such a scenario. Understanding these potential risks is crucial for making an informed investment decision.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.