What is the timeframe for transferring a Belocal franchise after the death or disability of the franchisee or its principals?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Upon the death or disability of Franchisee or a Principal, the executor, administrator, conservator or other personal representative of such person shall transfer such Franchisee's or Principal's interest to a party approved by Franchisor within six months thereof. The transfer must be completed within six months of the death or disability or this Agreement shall automatically terminate, unless Franchisor grants an extension in writing. Such transfers, including, without limitation, transfers by devise or inheritance, shall be subject to all conditions set forth in this Article 9, including Franchisor's right of first offer and right of first refusal, provided that if the transfer is by devise or inheritance, the transferor shall not be obligated to pay a transfer fee. Franchisor's consent to a transfer of any interest, subject to the restrictions of this Article 9 of this Agreement, shall not constitute a waiver of any claims it may have against the assignor, nor shall it be deemed a waiver of Franchisor's right to demand exact compliance with any of the terms or conditions of this Agreement by the transferee. The term "disability" means a mental or physical disability, impairment, or condition that is reasonably expected to prevent or actually does prevent Franchisee or a Principal from operating the Franchised Business in the manner required by this Agreement and the Franchise Brand Standards Manual or from performing its, his, or her obligations under this Agreement and the Franchise Brand Standards Manual.
- (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 a principal, their interest must be transferred to a Franchisor-approved party within six months. This transfer period begins from the date of death or disability. Failure to complete the transfer within this six-month timeframe will result in automatic termination of the franchise agreement, unless Belocal grants a written extension.
During the period between the death or disability and the completion of the transfer, the Belocal franchised business must continue to operate according to the terms of the franchise agreement. Within 30 days of the death or disability, the executor, administrator, conservator, guardian, or other personal representative must appoint a manager to oversee the business's daily operations, assuming a manager hasn't already been appointed. Any new manager is required to complete Belocal's standard training program at the franchisee's expense, sign confidentiality and non-solicitation agreements, and meet any other requirements Belocal has for manager acceptance.
Belocal also has the option, but not the obligation, to assume management of the franchised business or appoint a party to manage it until the transfer is completed. The terms and conditions for Belocal's right to step in are detailed in another section of the franchise agreement. This ensures business continuity and adherence to brand standards during the transition period following the death or disability of a franchisee or principal.