Does Belocal offer franchisees a right to renew or extend the term of their franchise agreement?

According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement does not offer a right to renew or extend the term. The initial term of the Belocal franchise agreement is three years, as detailed in Section 2.A. However, Section 2.B. explicitly states that there is no right to renew the franchise term.

This lack of a renewal option is a significant point for prospective franchisees to consider. Unlike many franchise systems that allow franchisees to extend their agreements, Belocal franchisees do not have a guaranteed opportunity to continue operating under the Belocal brand after the initial three-year term expires.

Without a renewal option, a franchisee's investment in building the business and customer base may not yield long-term returns unless a new agreement can be negotiated. It is important for potential franchisees to understand Belocal's reasoning for this policy and to assess the potential impact on their business plans. Prospective franchisees should inquire about the conditions under which Belocal might offer a new franchise agreement at the end of the initial term and what factors are considered in that decision.