factual

Under what circumstances will the Belocal franchisor notify the Providers to effectuate the assignment?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

. This Assignment is for collateral purposes only and, except as specified herein, Franchisor will have no liability or obligation of any kind whatsoever arising from or in connection with Franchisee's use of the Listings unless and until Franchisor notifies the telephone company, listing agencies, internet service providers, or other parties that provide the Listings (collectively, the "Providers") to effectuate the assignment pursuant to the terms hereof.

    1. Upon termination or expiration of the Franchise Agreement, Franchisor will have the right and is hereby empowered to effectuate the assignment of the Listings to itself or to any third party it designates. In the event Franchisor exercises its assignment rights, Franchisee will have no further right, title, or interest in or to the Listings; provided, however, Franchisee shall be obligated to pay all amounts owed in connection with the Listings, including all sums owed to Franchisor, Franchisor's affiliates, or Franchisor's approved suppliers under existing contracts for the Listings, and Franchisee shall immediately, at the Franchisor's request, (i) take any other action as may be necessary to transfer the Listings to the Franchisor or Franchisor's designated agent; (ii) install and maintain on any or all of the Listings, at Franchisee's sole expense, an intercept message, in a form and manner acceptable to Franchisor; (iii) disconnect, cancel, delete, remove, or discontinue the Listings; (iv) relist any Listing in a different location or with a new provider, whether published or online; (v) modify any Listing and any content in such Listing; (vi) provide all login or other access credentials to the Listings; and/or (vii) cooperate with Franchisor or its designated agent in undertaking any or all of the foregoing.

Source: Item 22 — CONTRACTS (FDD page 71)

What This Means (2025 FDD)

According to Belocal's 2025 Franchise Disclosure Document, Belocal will notify the Providers to effectuate the assignment under specific conditions. The assignment of listings, such as telephone numbers and online presences, is primarily for collateral purposes. Belocal will only notify the telephone company, listing agencies, internet service providers, or other parties providing the listings (collectively known as "Providers") to effectuate the assignment when specified in the agreement.

Specifically, Belocal retains the right to effectuate the assignment of the listings to itself or a third party upon the termination or expiration of the Franchise Agreement. This means that if the franchise agreement ends, Belocal can take control of the franchisee's listings.

In practical terms, this clause ensures that Belocal can maintain control over the brand's presence and customer reach even after a franchise agreement concludes. For a prospective franchisee, this highlights the importance of understanding the terms of the franchise agreement and the conditions under which Belocal can assume control of the listings. Franchisees are obligated to pay all amounts owed in connection with the listings even after the assignment.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.