After termination or expiration of the Belocal franchise agreement, what must a franchisee immediately cease doing?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Immediately cease to conduct operations of the Franchised Business and cease holding themselves out as a franchisee (or a principal of a franchisee) of Franchisor (except for purposes of disclosing past experience on a resume);
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, upon the expiration or termination of the franchise agreement, a franchisee must immediately cease conducting operations of the franchised business and stop representing themselves as a franchisee of Belocal. However, they are allowed to disclose their past experience as a franchisee on a resume.
In practical terms, this means that once the franchise agreement ends, the franchisee can no longer operate the Belocal business. They cannot continue to offer Belocal's services or products, and they must remove all branding and signage that identifies them as a Belocal franchisee. This is a standard provision in most franchise agreements, as it protects the integrity of the brand and prevents former franchisees from trading on Belocal's reputation without authorization.
This requirement is in place to ensure a clean break between Belocal and the former franchisee, preventing any potential confusion among customers or damage to the brand's image. While the franchisee can mention their past affiliation with Belocal on a resume for employment purposes, they cannot otherwise present themselves as being connected to the franchise system after the agreement's termination or expiration.