Under what circumstances can Belocal limit or remove services or benefits to the franchisee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Limitation of Services or Benefits.
Franchisor shall have the right, but not the obligation, to temporarily or permanently limit or remove certain services or benefits provided by Franchisor or Franchisor's affiliates, or required to be provided by Franchisor, to Franchisee hereunder in lieu of exercising its right to terminate this Agreement, including, without limitation, eliminating any Online Presences associated with the Publication or the Franchised Business, restricting or removing Franchisee's right to purchase products directly or indirectly from Franchisor or its affiliates, limiting Franchisor's advertising and promotional assistance, restricting or removing Franchisee's right to use Franchisor's Software Programs or Franchisor-provided Technology, if any, and publishing the Publication.
Nothing in this Section constitutes a waiver of any other right or remedy of Franchisor under this Agreement or at law.
Franchisee acknowledges that Franchisor's exercise of its rights pursuant to this Section 10.H. shall not be deemed a constructive termination.
Any services or benefits removed or limited pursuant to this Section 10.H. may be reinstated at any time in Franchisor's sole discretion.
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 limit or remove certain services or benefits to the franchisee as an alternative to terminating the franchise agreement. This action can be temporary or permanent and is at Belocal's discretion.
Specifically, Belocal can eliminate online presences associated with the publication or the franchised business. They can also restrict or remove the franchisee's right to purchase products directly or indirectly from Belocal or its affiliates. Furthermore, Belocal can limit advertising and promotional assistance, restrict or remove the franchisee's right to use Belocal's software programs or technology, and publish the publication themselves.
The FDD states that the exercise of these rights by Belocal does not constitute a constructive termination of the agreement. Any services or benefits that are removed or limited can be reinstated at any time at Belocal's sole discretion. This clause provides Belocal with significant flexibility to manage the franchise relationship without resorting to full termination, while also creating some uncertainty for the franchisee regarding the stability of the support and resources they receive.