Under what conditions can a Belocal franchisee terminate the Franchise Agreement, and what is the deadline for doing so?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| of the Publication. The provisions regarding termination are subject to state law. You must comply with certain wind-down and post termination obligations. | ||
| f. | Section 10. | We may terminate because of your default(s). |
| Termination by | ||
| franchisor with "cause" | ||
| g. "Cause" defined - curable defaults | Section 10.D. | If you do not cure the following defaults within the cure periods we establish, we will have the right to terminate: failure to meet content, review, approval, processing, and other publication deadlines; failure to operate the Franchised Business in accordance with our standards; failure to maintain content that satisfies our standards; failure to timely submit content or failure to submit sufficient content; failure to return any Returnable Commissions due to us; failure to pay any fee or amount when due to a supplier or creditor; failure to pay your independent staff in accordance with law; failure to interact professionally with clients and leads of Hyport Digital or failure to comply with policy and requirements for Hyport Digital leads, clients, goods, services, and trademarks; failure to interact professionally with other franchisees, advertisers, clients, or members of Communities or Industry Groups; other non compliance; repeated complaints about the Franchised Business, Franchisee, or any Principal. Franchisor has a step-in right upon default. |
| h. "Cause" defined – non-curable defaults | Sections 10.B. and 10.C. | Insolvency; general assignment for benefit of creditors; filing of voluntary bankruptcy; filing of involuntary bankruptcy not dismissed within 60 days; admission of inability to pay debts; adjudicated bankrupt or insolvent; receivership; final judgment remains unsatisfied for 30 days or more; dissolution; execution of levy or sale after levy; abandonment or cessation of Franchised Business; unauthorized transfer; failure to comply with restrictions on use of Copyrighted Materials and confidential information; failure to comply with covenants; misuse of the Systems or Marks; material misrepresentations or breaches of representations and warranties; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 49–55)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchisor, not the franchisee, can terminate the franchise agreement due to the franchisee's defaults. These defaults are categorized as either curable or non-curable.
Curable defaults include failing to meet content deadlines, not operating the business according to Belocal's standards, failing to maintain content standards, not submitting content on time or submitting enough content, not returning commissions, not paying suppliers or staff, interacting unprofessionally with clients or other franchisees, or repeated complaints. If a franchisee fails to correct these issues within the cure periods established by Belocal, Belocal has the right to terminate the agreement.
Non-curable defaults leading to termination include insolvency, making a general assignment for the benefit of creditors, filing for bankruptcy (either voluntarily or involuntarily if not dismissed within 60 days), admitting inability to pay debts, being adjudicated bankrupt or insolvent, receivership, an unsatisfied final judgment for 30 days or more, dissolution, execution of levy or sale after levy, abandoning the business, unauthorized transfer, not complying with copyright restrictions, misusing the system or marks, or material misrepresentations. The FDD does not specify conditions under which a franchisee can terminate the agreement.