Under the Belocal franchise agreement, what happens if the franchisee, any of its Principals, or any of its affiliates defaults under any other agreement with the Franchisor or its affiliates and fails to cure the default?

According to Belocal's 2025 Franchise Disclosure Document, if a franchisee, any of its Principals, or any of its affiliates defaults under any other agreement with Belocal or its affiliates and fails to cure the default as provided for in such other agreement, it constitutes an event of default under the franchise agreement.

This means that Belocal has grounds to take action against the franchisee. The specific consequences of such a default would be governed by the terms of the franchise agreement, potentially leading to termination of the agreement if the default is not resolved.

It is important for prospective Belocal franchisees to understand all their obligations under any related agreements with Belocal or its affiliates, as a failure to meet those obligations could jeopardize their franchise. Franchisees should carefully review all agreements and seek legal counsel to fully understand their rights and responsibilities.