Does the imposition of a fine by Belocal waive any of Belocal's other remedies under the Franchise Agreement?

According to Belocal's 2025 Franchise Disclosure Document, the imposition of a fine does not waive any of Belocal's other remedies under the Franchise Agreement. Belocal has the option to levy a fine up to $500 for the first instance of a franchisee failing to obtain prior written approval for advertising or promotional plans and materials, offering unauthorized products or services, or otherwise failing to comply with the System operating standards or the Franchise Brand Standards Manual. For a second or subsequent instance, the fine can be up to $1,000.

This means that Belocal can still pursue other legal or contractual remedies available to them, even after issuing a fine to the franchisee. These remedies could include actions such as seeking an injunction, terminating the franchise agreement, or pursuing damages for breach of contract.

This provision protects Belocal's interests by ensuring that they are not limited to only issuing fines in cases of franchisee non-compliance. It allows Belocal to take further action if necessary to protect its brand, system standards, and overall business interests. For a prospective franchisee, this highlights the importance of adhering to Belocal's standards and requirements to avoid not only fines but also potentially more serious consequences.