If the Belocal franchisee is a partnership or limited liability company, what must its written agreement provide regarding ownership interests?

According to Belocal's 2025 Franchise Disclosure Document, if a franchisee is a partnership or limited liability company, the written agreement governing the entity must state that ownership of an interest in the partnership or LLC is subject to all restrictions imposed by the Franchise Agreement on any transfer or assignment of such interests. This means that any partner or member looking to sell or transfer their ownership stake must adhere to the transfer restrictions outlined in the franchise agreement.

This requirement ensures that Belocal maintains control over who becomes an owner in a franchise location. By including this provision in the partnership or LLC agreement, all owners are legally bound to the transfer restrictions, preventing unauthorized or unapproved transfers of ownership.

For a prospective Belocal franchisee, this means that if they choose to operate as a partnership or LLC, they must ensure their organizational documents contain the required language regarding transfer restrictions. Failure to do so could be a breach of the Franchise Agreement. Franchisees should carefully review the transfer provisions in the Franchise Agreement and ensure their partnership or LLC agreement is consistent with those terms.