What is the prohibited action for a Belocal franchisee after the final commission payment following termination, expiration, or transfer of the agreement?

According to Belocal's 2025 Franchise Disclosure Document, a franchisee is not entitled to receive any payment after the final commission payment that Belocal makes to the franchisee following the termination, expiration, or transfer of the Franchise Agreement, regardless of the reason. Additionally, the franchisee is not entitled to receive any payment based upon past due monies associated with the franchised business that are collected by Belocal or its affiliates after the termination, expiration, or transfer of the agreement, for any reason. This means that once the franchise agreement ends, the franchisee will not receive any further payments, even if they are for work completed before the termination or for outstanding debts collected after the agreement ends.

This provision protects Belocal from having to continue payments indefinitely after a franchise agreement concludes. It ensures a clean break in financial obligations, simplifying accounting and preventing potential disputes over revenue collection.

For a prospective franchisee, this highlights the importance of understanding the timing of commission payments and the potential for outstanding revenue at the time of termination. It would be prudent to discuss with Belocal how they handle final account reconciliations and what steps a franchisee can take to ensure all due payments are received before the agreement's end. This also underscores the need for careful financial planning to account for the cessation of income following the termination or transfer of the franchise.