How long can a final judgment remain unsatisfied against a Belocal franchisee before it triggers automatic termination?

According to Belocal's 2025 Franchise Disclosure Document, a franchisee will be in default, leading to automatic termination of the franchise agreement without notice, if a final judgment remains unsatisfied or of record for 30 days or longer. However, this termination can be avoided if a supersedeas bond is filed.

This provision means that if a court issues a final judgment against a Belocal franchisee, the franchisee has a limited time to satisfy the judgment. If the judgment remains unpaid for more than 30 days, Belocal has the right to automatically terminate the franchise agreement. The franchisee loses all rights granted under the agreement at that point.

The inclusion of the supersedeas bond option provides a potential safeguard for the franchisee. A supersedeas bond is a type of surety bond that can be obtained to suspend the enforcement of a judgment while an appeal is pending. By filing this bond, the franchisee can prevent automatic termination while pursuing an appeal of the judgment. This is a fairly standard clause in franchise agreements to protect the franchisor's interests while also providing some recourse for franchisees.