factual

Under what circumstances related to death or disability of a Belocal franchisee or principal will the Franchise Agreement automatically terminate?

Belocal Franchise · 2025 FDD

Answer 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;

  • (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, 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, unless Belocal grants a written extension.

During the six-month period following the death or disability, the franchised business must continue to operate according to the terms of the Franchise Agreement. The executor, administrator, conservator, guardian, or other personal representative is required to appoint a manager within 30 days of the death or disability to oversee the business, unless a manager was previously appointed and remains in place. Any new manager must complete Belocal's standard training program at the franchisee's expense.

The term "disability" is defined as a mental or physical condition that prevents the franchisee or principal from operating the franchised business as required by the Franchise Agreement and the Franchise Brand Standards Manual, or from fulfilling their obligations under these documents. This provision ensures that the Belocal business continues to operate according to brand standards even in unforeseen circumstances, while also providing a defined timeline for transferring ownership.

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.