If there is a period of noncompliance with the Belocal agreement, how are the time periods relating to the obligations described in the agreement affected?

According to Belocal's 2025 Franchise Disclosure Document, the time periods relating to the obligations described in the franchise agreement will be tolled during any period of noncompliance. This means that if a franchisee is not complying with the terms of the agreement, the clock stops ticking on certain obligations.

For example, if a franchisee has a certain amount of time to meet a performance target and fails to comply with other aspects of the agreement during that period, the time they have to meet the target is effectively extended by the duration of their noncompliance. This could affect deadlines for renovations, required updates, or other time-sensitive actions outlined in the agreement.

This provision protects Belocal by ensuring that franchisees cannot benefit from their own noncompliance. It allows Belocal to enforce the agreement fully, even if the franchisee has been in breach. Franchisees should be aware of this clause and understand that any period of noncompliance will not only expose them to potential penalties but also extend the time they have to fulfill certain obligations under the franchise agreement.