Under the Belocal franchise agreement, can a Belocal franchisee avoid automatic termination due to an unsatisfied judgment by filing a supersedeas bond?

According to Belocal's 2025 Franchise Disclosure Document, a franchisee can avoid automatic termination of their franchise agreement if a final judgment remains unsatisfied for 30 days or longer by filing a supersedeas bond. This provides a mechanism for the franchisee to prevent immediate termination while they appeal or otherwise address the judgment.

The inclusion of this clause offers a degree of protection to Belocal franchisees. Without it, a franchisee could face immediate termination due to circumstances that might be temporary or subject to appeal. The supersedeas bond essentially acts as a guarantee that the judgment will be satisfied if the appeal is unsuccessful, allowing the franchisee to continue operating the business in the interim.

It is important for a prospective Belocal franchisee to understand the conditions under which automatic termination can occur and the steps they can take to prevent it. Filing a supersedeas bond involves legal and financial considerations, so franchisees should seek professional advice if they find themselves in such a situation. This clause provides a specific exception that could be crucial for maintaining the franchise agreement.