Can Belocal transfer or assign the Franchise Agreement to another party without notifying or getting consent from the franchisee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
A. By Franchisor.
- (1) Franchisor has the right to transfer or assign this Agreement and all or any part of its rights or obligations herein to any person or legal entity without prior notice to, or the consent of, Franchisee. Upon any such transfer or assignment, the transferee or assignee shall be solely responsible for all of Franchisor's obligations arising hereunder subsequent to the transfer or assignment.
- (2) If Franchisor transfers or assigns this Agreement to an unaffiliated third-party purchaser in connection with the sale of the entire N2 publication(s) franchising business, and if, as of the date of such transfer or assignment, the remaining Term of this Agreement is less than 540 days, then, prior
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal has the right to transfer or assign the Franchise Agreement, or any part of its rights and obligations, to any person or legal entity without prior notice to, or consent from, the franchisee. Upon such transfer or assignment, the new entity assumes responsibility for Belocal's obligations under the agreement from that point forward.
However, if Belocal transfers the agreement to an unaffiliated third party in connection with the sale of its entire franchising business, and the remaining term of the agreement is less than 540 days as of the transfer date, Belocal must offer the franchisee an amendment to extend the term to 540 days from the closing date of the transfer. This clause does not limit Belocal's general right to transfer the agreement without consent, as stated in the previous section.
This means that a Belocal franchisee could find their agreement transferred to a new owner without their prior knowledge or approval. While the new owner is bound by the existing agreement, the franchisee has no say in who that new owner is. However, if Belocal sells the entire franchise system to a third party when the agreement has less than 540 days remaining, the franchisee has the option to extend the agreement to ensure they have at least 540 days left. This provision offers some protection to the franchisee in the event of a sale of the entire Belocal franchise system.