How long does Belocal have to notify the franchisee of its decision regarding a proposed transfer?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee wishes to transfer all or part of its interest in the Franchised Business or this Agreement or in substantially all of the assets of the Franchised Business, or if Franchisee or any Principal wishes to transfer any ownership interest in Franchisee, transferor and the proposed transferee must apply to Franchisor for its consent.
Franchisee agrees to submit to Franchisor all information Franchisor may require in order to determine whether to approve a proposed transfer of the Franchised Business, and Franchisor agrees to notify Franchisee of its approval or disapproval within a reasonable period of time, not to exceed 30 days, after Franchisor has received all requested information relating to any proposed transfer of the Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their interest in the franchised business, they must apply to Belocal for consent. Belocal will then notify the franchisee of its decision to approve or disapprove the transfer within a reasonable time frame.
Specifically, Belocal has up to 30 days to notify the franchisee of its decision, but this 30-day period only begins after Belocal has received all the information it requests regarding the proposed transfer. This means the franchisee must promptly provide all necessary documentation and data to Belocal to start the 30-day clock.
This requirement ensures that Belocal has sufficient time to evaluate the proposed transfer and the potential transferee. However, it also places a responsibility on the franchisee to gather and submit all required information efficiently to avoid delays in the transfer process. Prospective franchisees should clarify with Belocal exactly what information is needed to ensure a smooth and timely transfer process should they decide to sell their business.