Under what circumstances related to death or disability of a Belocal franchisee or principal will the Belocal Franchise Agreement automatically terminate?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (11) This Agreement and the Franchised Business are not transferred in accordance with Section 9 of this Agreement within six months of the death or disability of Franchisee or any of its Principals, unless Franchisor grants an extension in writing;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Franchise Agreement will automatically terminate if the franchise or principal's interest is not transferred to a Belocal-approved party within six months of their death or disability. However, Belocal may grant a written extension to this six-month period.
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 for the franchised business. This requirement can be waived if a manager was previously appointed and remains responsible for the business's day-to-day operations.
Any newly appointed manager must complete Belocal's standard training program at the franchisee's expense and sign Belocal's then-current form of confidentiality and non-competition agreement. This ensures that the business continues to meet Belocal's standards and protects Belocal's interests during the transition period.