What is the timeframe for curing a material breach of the Belocal agreement after receiving written notice?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Either party may terminate this Agreement, effective upon written notice to the other party (the "Defaulting Party"), if the Defaulting Party: (a) materially breaches this Agreement, and such breach is incapable of cure, or with respect to a material breach capable of cure, the Defaulting Party does not cure such breach within 30 days after receipt of written notice of such breach; (b) becomes insolvent or admits its inability to pay its debts generally as they become due; (c) becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency law, which is not fully stayed within seven business days or is not dismissed or vacated within 45 days after filing; (d) is dissolved or liquidated or takes any corporate action for such purpose; (e) makes a general assignment for the benefit of creditors; or (f) has a receiver, trustee, custodian, or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business.
Notwithstanding anything to the contrary in this section, N2 may terminate this Agreement before the expiration date of the Term on written notice if (x) the Franchisee fails to pay any amount when due hereunder and such failure continues for 7 days after N2's written notice to the Franchisee of nonpayment; or (y) the Franchisee fails to pay any amount when due hereunder more than 2 times in any 2-month period.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a franchisee materially breaches the agreement and the breach is capable of being cured, the franchisee has 30 days to cure the breach after receiving written notice. If the franchisee does not cure the breach within this 30-day period, Belocal has the right to terminate the agreement.
However, Belocal can terminate the agreement with written notice and without an opportunity to cure under certain conditions. These conditions include if the franchisee abandons the business, transfers interests in the agreement without permission, misuses copyrighted materials or confidential information, fails to comply with confidentiality and non-competition covenants, misuses the Belocal system or marks, or makes any material misrepresentation to Belocal.
Additionally, the agreement can be terminated without notice if the franchisee becomes insolvent, makes an assignment for the benefit of creditors, files for bankruptcy, admits inability to pay debts, or is adjudicated bankrupt.