Under what conditions can Belocal terminate the franchise agreement immediately with written notice?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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;
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 under several conditions. These conditions do not provide the franchisee an opportunity to cure the issue.
Belocal may terminate the agreement if the franchisee abandons the business, ceases operations, or attempts to transfer any interest in the agreement or franchised business in violation of the agreement. Immediate termination can also occur if the franchisee or any principal uses copyrighted materials or confidential information improperly, fails to comply with covenants related to confidentiality, or engages in unfair competition or solicitation.
Additionally, Belocal can immediately terminate the agreement if the franchisee misuses the Belocal system or marks, impairs the associated goodwill, breaches obligations outlined in Section 8 of the agreement, makes any material misrepresentation to Belocal, or breaches any warranty or representation made to Belocal.