Does Belocal need the franchisee's consent to transfer or assign the Franchise Agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
9. TRANSFER AND ASSIGNMENT
A. By Franchisor.
- (1) Franchisor has the right to transfer or assign this Agreement and all or any part of its rights or obligations herein to any person or legal entity without prior notice to, or the consent of, Franchisee. Upon any such transfer or assignment, the transferee or assignee shall be solely responsible for all of Franchisor's obligations arising hereunder subsequent to the transfer or assignment.
- (2) If Franchisor transfers or assigns this Agreement to an unaffiliated third-party purchaser in connection with the sale of the entire N2 publication(s) franchising business, and if, as of the date of such transfer or assignment, the remaining Term of this Agreement is less than 540 days, then, prior
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal does not need the franchisee's consent to transfer or assign the Franchise Agreement. Belocal retains the right to transfer the agreement to any person or legal entity without prior notice to, or consent from, the franchisee. Upon such transfer, the new entity assumes responsibility for Belocal's obligations under the agreement from that point forward.
However, if Belocal transfers the agreement to an unaffiliated third party in connection with selling the entire N2 publication(s) franchising business, and the remaining term of the agreement is less than 540 days, Belocal must offer the franchisee an amendment to extend the term to 540 days from the transfer date, at the franchisee's option. This ensures the franchisee has a minimum term length even if the franchise is sold.
This condition does not limit Belocal's overall right to transfer the agreement. It only applies under specific circumstances related to the sale of the entire franchising business when the remaining term is short. This provision aims to protect franchisees by ensuring a reasonable term length if the franchise system changes ownership.