Who is responsible for the cost of training a new manager appointed after the death or disability of a Belocal franchisee or principal?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, in the event of the death or disability of a franchisee or principal, the franchisee is responsible for the cost of training a new manager appointed to oversee the Belocal franchise. Specifically, the franchisee's executor, administrator, conservator, guardian, or other personal representative must appoint a manager within 30 days of the death or disability if one has not already been appointed. This new manager is required to complete Belocal's standard training program.
The FDD states explicitly that "Any new manager must complete Franchisor's standard training program at Franchisee's expense". This means the franchisee's estate or representative will need to cover all expenses associated with the manager's training.
These expenses include not only the cost of the training program itself, but also related costs such as transportation, lodging, meals, wages, and other travel-related expenses for the new manager. This financial responsibility underscores the importance of succession planning for Belocal franchisees to ensure a smooth transition and continued operation of the franchise in unforeseen circumstances.