Under what conditions can Belocal change a franchisee's territory?

According to Belocal's 2025 Franchise Disclosure Document, Belocal has the sole discretion to change a franchisee's territory, including its size, shape, boundaries, and population. Belocal will provide the franchisee with ninety (90) days' notice of any such changes.

This means that as a Belocal franchisee, your territory is not guaranteed and can be altered by Belocal at any time, provided they give you 90 days' notice. This could impact your business if Belocal reduces your territory, potentially decreasing your customer base and revenue opportunities. Conversely, an increase in territory size might require additional investment to properly service the expanded area.

Unlike some franchise systems that offer exclusive territories, Belocal does not grant territorial rights or protection. Belocal retains the right to operate or license others to operate businesses, including those that compete with your franchise, even within or adjacent to your territory. They can also market and sell their services anywhere, which could directly compete with your Belocal franchise.

Prospective franchisees should carefully consider the implications of these reserved rights and the potential for territorial changes. It would be prudent to discuss with Belocal the specific criteria or circumstances that might lead to a territory change and to understand how such changes could affect the franchisee's business plan and financial projections.