Under what condition can Belocal terminate the franchise agreement without allowing the franchisee an opportunity to cure?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- C. Termination on Notice; No Cure. Franchisor may terminate this Agreement immediately upon written notice to Franchisee, without an opportunity to cure, if:
- (1) Franchisee abandons or otherwise ceases operations of the Franchised Business contemplated by this Agreement;
- (2) Franchisee or any Principal transfers or attempts to transfer any interest in this Agreement, Franchisee, or the Franchised Business in violation of Section 9. of this Agreement;
- (3) Franchisee or any Principal uses the Copyrighted Materials or uses or discloses the Confidential Information in violation of this Agreement;
- (4) Franchisee or any Principal fails to comply with any of the covenants set forth in this Agreement, including those in Section 7.A to 7.D. relating to confidentiality and restrictions against unfair competition and solicitation;
- (5) Franchisee or any Principal misuses or makes any unauthorized use of the System or the Marks, or impairs the goodwill associated therewith or Franchisor's rights therein; or otherwise breaches the obligations set forth in Section 8;
- (6) Franchisee or any Principal makes any material misrepresentation to Franchisor or breaches any warranty or representation made to Franchisor, whether in this Agreement or otherwise;
- (7) Whether before or after the Effective Date, Franchisee or any Principal has been or is charged with, convicted of, or pleads nolo contendere to, a felony or indictable offense in any court, is subject to a judgment, default, lien, bankruptcy, or similar occurrence, becomes known to Communities, Industry Groups, or advertisers as being of bad moral character, disparages, embarrasses, or tarnishes Franchisor's reputation, or fails to comport itself at all times in accordance with the highest standards of conduct and behavior, consistent with its responsibilities as a franchisee;
- (8) For any N2 publication for which Franchisee is responsible, the total expenses, including Royalty and Publication Expenses (defined below), in a given month exceed the revenue actually received by Franchisor in that same month under the Advertising Contracts for that same publication;
- (9) Franchisee, any of its Principals, or any of its affiliates is in default under any other agreement with Franchisor or any of Franchisor's affiliates and fails to cure such default as provided for in such other agreement;
- (10) Franchisee or any Principal commits a second or subsequent event of default under this Agreement, whether or not such defaults are of the same or different nature and whether or not such defaults have been cured by Franchisee after notice by Franchisor;
- (11) Franchisee underreports its sales of Advertising Contracts;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal can terminate the franchise agreement immediately with written notice and without an opportunity for the franchisee to cure under certain conditions. These conditions include if the franchisee abandons or ceases operations of the franchised business, transfers or attempts to transfer any interest in the agreement in violation of its terms, or misuses copyrighted materials or confidential information.
Additionally, Belocal can terminate the agreement without an opportunity to cure if the franchisee fails to comply with covenants related to confidentiality and restrictions against unfair competition and solicitation, misuses the Belocal system or marks, or impairs the associated goodwill or Belocal's rights. Making any material misrepresentation to Belocal or breaching any warranty or representation also allows for immediate termination.
Further, Belocal can terminate the agreement without allowing the franchisee to cure if a final judgment remains unsatisfied for 30 days or longer (unless a supersedeas bond is filed), the franchisee is dissolved, the agreement and franchised business are not transferred within six months of the death or disability of the franchisee or its principals (unless Belocal grants an extension), or execution is levied against the franchisee's business or property. Also, if the franchisee fails to satisfy requirements related to Business Improvement Plans or improperly accesses or manipulates Belocal's IT systems, immediate termination is possible. Finally, if the franchisee commits a default that cannot be cured, Belocal can terminate the agreement immediately.