Under the Belocal franchise agreement, what constitutes 'disability' of a Belocal franchisee that triggers the transfer requirement?

According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement specifies the conditions under which a franchisee's disability necessitates the transfer of their franchise interest. The term 'disability' is explicitly defined within the context of the agreement.

Specifically, disability refers to a mental or physical impairment or condition. This impairment must either be reasonably expected to prevent the franchisee or a principal from operating the franchised Belocal business as required by the franchise agreement and the Franchise Brand Standards Manual, or it must actually prevent them from fulfilling their obligations under the same agreement and manual.

This definition is important for prospective Belocal franchisees as it clarifies the circumstances under which they may be required to transfer their franchise due to health-related issues. It ensures that both the franchisee and Belocal have a clear understanding of what constitutes a disability that would trigger the transfer provisions, providing a degree of certainty and protection for both parties. Franchisees should carefully consider this definition and its implications for their personal circumstances before entering into a franchise agreement with Belocal.