What are the obligations of a Belocal franchisee upon termination or nonrenewal of the franchise agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| manipulates, corrupts, or improperly modifies the IT Systems or any data stored therein; or (iv) transfers, copies, or discloses any data from the IT Systems except as expressly permitted under the Franchise Agreement; other defaults that are incapable of being cured. A provision in the Franchise Agreement which terminates the Franchise Agreement upon your bankruptcy may not be enforceable under Title 11, United States Code Section 101. Franchisor has a step-in right upon default. | ||
| i. Franchisee's obligations on termination/nonrenewal | Sections 7. and 11. | Comply with wind-down obligations; pay us wind-down damages, if applicable; stop using our Marks, Copyrighted Materials, and confidential information; return the Franchise Brand Standards Manual and Copyrighted Materials; stop operating the Franchised Business and do not represent yourself as a current franchisee; pay amounts due; at our option, assign to us your business directory listings and the Online Presences; grant us control of any Online Presence; comply with our instructions regarding the Technology and Franchised Business Data; comply with confidentiality, non- competition, and non solicitation covenants; pay us all costs, damages, and expenses we incur because of your defaults or resulting from or subsequent to the termination of the agreement (including enforcement of provisions). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 49–55)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees have several obligations upon termination or nonrenewal of the franchise agreement. These obligations are detailed in Sections 7 and 11 of the Franchise Agreement.
Upon termination or nonrenewal, a Belocal franchisee must comply with wind-down obligations, which may include paying wind-down damages if applicable. The franchisee must cease using Belocal's Marks, Copyrighted Materials, and confidential information. Additionally, the Franchise Brand Standards Manual and Copyrighted Materials must be returned to Belocal. The franchisee is also required to stop operating the Franchised Business and must not represent themselves as a current Belocal franchisee.
Financially, the franchisee must pay all outstanding amounts due to Belocal. At Belocal's option, the franchisee may be required to assign business directory listings and online presences to Belocal, and grant control of any Online Presence to Belocal. The franchisee must also comply with Belocal's instructions regarding the Technology and Franchised Business Data.
Furthermore, the franchisee must adhere to confidentiality, non-competition, and non-solicitation covenants. Finally, the franchisee is responsible for paying all costs, damages, and expenses Belocal incurs due to the franchisee's defaults or resulting from the termination of the agreement, including the costs of enforcing these provisions.