What are the requirements for a new manager appointed after the death or disability of a Belocal franchisee or principal?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (2) During the period between death or disability of Franchisee or a Principal and the completion of the transfer described in Section 9.E(1), the Franchised Business still must be operated in accordance with the terms and conditions of this Agreement. Upon the death or disability of Franchisee or a Principal, the Franchisee's or the Principal's executor, administrator, conservator, guardian, or other personal representative must within a reasonable time, not to exceed 30 days from the date of death or disability, appoint a manager for the Franchised Business (unless Franchisee or the Principal had previously appointed a manager who remains responsible for the day-to-day operation of the Franchised Business). Any new manager must complete Franchisor's standard training program at Franchisee's expense, sign
Franchisor's then-current form of confidentiality and non-solicit agreement, and comply with any of Franchisor's then-current requirements for acceptance of a manager.
- (3) Not in lieu of any additional rights Franchisor may have, upon death or disability of Franchisee or a Principal, Franchisor may, but shall not be obligated to, assume the management of the Franchised Business (or appoint a party to assume its management) until the transfer pursuant to Section 9.E(1) is completed. The terms and conditions for the exercise of Franchisor's step-in right are set forth in Section 12.E.
- F. Transfer Damages.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a franchisee or principal dies or becomes disabled, their representative must appoint a manager for the franchised business within 30 days, unless a manager was previously appointed and remains responsible. This ensures the business continues operating under the franchise agreement's terms.
The newly appointed manager must complete Belocal's standard training program at the franchisee's expense. They also need to sign Belocal's current confidentiality and non-solicitation agreement and meet any other requirements Belocal has for manager acceptance at that time. This ensures the manager is properly trained and legally bound to protect Belocal's confidential information and business interests.
Belocal also has the option, but not the obligation, to step in and manage the business itself or appoint a third party to do so until the franchise is transferred. The terms for Belocal's step-in rights are detailed in another section of the franchise agreement. This provides Belocal with a safety net to maintain brand standards and operational continuity during the transition period following a franchisee's death or disability.