Under what conditions can Belocal suspend services for non-payment?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary in this section, N2 may terminate this Agreement before the expiration date of the Term on written notice if (x) the Franchisee fails to pay any amount when due hereunder and such failure continues for 7 days after N2's written notice to the Franchisee of nonpayment; or (y) the Franchisee fails to pay any amount when due hereunder more than 2 times in any 2-month period.
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 if a franchisee fails to pay amounts due. Specifically, Belocal may terminate the agreement with written notice if the franchisee fails to pay any amount due, and this failure continues for 7 days after Belocal provides written notice of nonpayment.
Additionally, Belocal can terminate the agreement if the franchisee fails to pay any amount when due more than 2 times in any 2-month period. This means that even if a franchisee eventually pays, frequent late payments can still lead to termination.
This policy highlights the importance of maintaining timely payments to Belocal. A prospective franchisee should ensure they have sufficient capital and a reliable system for managing payments to avoid potential termination of the agreement.