After termination, expiration, or transfer of the Belocal agreement, is the franchisee entitled to any further commission payments?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not be entitled to receive any payment after the final Commission payment that Franchisor makes to Franchisee following the termination, expiration, or transfer of this Agreement, for any reason. Franchisee shall not be entitled to receive any payment based upon past due monies associated with the Franchised Business that are collected by Franchisor or its affiliates after the termination, expiration, or transfer of this Agreement, for any reason.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee is not entitled to receive any commission payments after the termination, expiration, or transfer of the Franchise Agreement. This applies regardless of the reason for the termination, expiration, or transfer.
Specifically, Belocal franchisees are not entitled to receive any payment based on 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. This means that even if the franchisee generated revenue before the end of the agreement, they will not receive commissions on those revenues if Belocal collects them after the agreement ends.
This policy is important for prospective franchisees to understand, as it affects their potential earnings and revenue streams, especially towards the end of their franchise term or in the event of a transfer. Franchisees should factor this into their financial planning and consider the implications for their business valuation if they plan to sell their franchise.