What are the requirements for a transferee to be approved by Belocal?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| l. Franchisor's approval of transfer by franchisee | Section 9.B. | You must notify us with a notice of transfer, and we must give written consent to a transfer by you or your Principals. All transfers must meet certain conditions. |
| m. Conditions for franchisor approval of transfer | Section 9.B. | Conditions include the following: you must pay all amounts due; not be in default; sign a general release (subject to state law); pay a transfer fee; and remain liable for pre-transfer obligations. Any Transferee must meet our criteria, complete required training, meet our guaranty obligations, make certain representations, and enter into our then-current franchise agreement. |
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, a franchisee wishing to transfer their franchise must first notify Belocal and receive written consent for the transfer to proceed. Several conditions must be met to gain Belocal's approval.
First, the franchisee must be current on all payments owed to Belocal and not be in default of the Franchise Agreement. The franchisee must also sign a general release, subject to state law, and pay a transfer fee. Importantly, even after the transfer, the original franchisee remains liable for any obligations that arose before the transfer was completed.
Furthermore, any potential transferee must meet Belocal's criteria for new franchisees. This includes completing any required training programs, meeting Belocal's guaranty obligations, and making certain representations to Belocal. The transferee will also be required to enter into Belocal's then-current franchise agreement, which may have different terms and conditions than the original agreement. These stipulations ensure that any new franchisee is well-prepared and committed to upholding Belocal's standards and practices.