What is the length of the notice period Belocal must provide to the franchisee before changing the franchisee's territory?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has the sole discretion to change Franchisee's Territory, including its size, shape, boundaries, and population, upon ninety (90) days' notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal has the sole discretion to change a franchisee's territory, including its size, shape, boundaries, and population. Belocal must provide the franchisee with ninety (90) days' notice before making any such changes to the territory.
This means that Belocal can alter the franchisee's territory, potentially impacting the franchisee's business operations and revenue potential. The 90-day notice period allows the franchisee some time to adjust their business strategies and operations in response to the changes. However, the franchisee has no control over whether the territory is changed.
This lack of territorial protection is a significant risk for prospective Belocal franchisees. It is not uncommon for franchise agreements to grant the franchisor the right to modify territories, but the extent of that right and the notice period can vary. Prospective franchisees should carefully consider the potential impact of territory changes on their business and negotiate for more favorable terms if possible.