Where are the terms and conditions for Belocal's step-in right upon death or disability of a franchisee or principal detailed?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the terms and conditions for Belocal's exercise of its step-in rights upon the death or disability of a franchisee or principal are detailed in Section 12.E of the franchise agreement.
Specifically, Item 22 outlines that upon the death or disability of a franchisee or principal, Belocal has the option, but not the obligation, to assume management of the franchised business or appoint a party to do so. This management continues until the transfer of the business interest is completed according to Section 9.E(1).
It is important for prospective franchisees to carefully review Section 12.E to understand the full scope of Belocal's rights and the franchisee's obligations in the event of death or disability. This includes understanding the conditions under which Belocal may exercise its step-in rights and the financial implications for the franchisee or their estate.