Under what grounds can a Belocal franchisee terminate the franchise agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. Franchisor and Franchisee each have the right to terminate this Agreement for any reason or no reason by providing the other party with written notice of termination on or before the earlier to occur of (1) nine months following the Effective Date or (2) the date on which the first issue of the Publication is issued. In the event of termination of this Agreement pursuant to this Section 10.E., neither party shall incur any liability or have any obligation to pay the other party any amounts hereunder, except for amounts due and owing as of the date of the mutual termination. In Franchisor's sole discretion, Franchisor may condition Franchisee's termination under this Section 10.E. upon the parties' execution of a mutual termination and release agreement in the form required by Franchisor and Franchisee's compliance with the wind-down procedures in the Franchise Brand Standards Manual, and Franchisee shall be required to comply with all of its post-termination obligations required in this Agreement. If Franchisee fails to comply with the terms of the mutual termination and release agreement, abandons the Franchised Business prior to the date of mutual termination, or fails to comply with the winddown procedures in the Franchise Brand Standards Manual, Franchisor may charge the Wind-Down Damages defined in Section 10.J. below.
- F.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, both the franchisee and Belocal have specific rights to terminate the franchise agreement under certain conditions. A Belocal franchisee can terminate the agreement for any reason or no reason by providing written notice to Belocal on or before the earlier of (1) nine months following the Effective Date or (2) the date on which the first issue of the Publication is issued.
Additionally, the franchise agreement will immediately terminate upon any expiration or termination of the Franchise Agreement between the franchisee and N2's affiliate, N2 Franchising, Inc. N2 or the franchisee may terminate the agreement for convenience at any time upon 30 days' written notice. However, any termination for convenience by the franchisee is subject to the then-current minimum service period(s) associated with the selected Services as set forth in the Service Guidelines.
If N2 cannot reperform the Services in compliance with the warranty set forth above within a reasonable time (but no more than 30 days) after Franchisee's written notice of such breach, the Franchisee may, at its option, terminate the Agreement by serving written notice of termination in accordance with Section 5. Within 30 days after the effective date of such termination, N2 will credit to the Franchisee an amount equal to the portion of the fees previously paid by the Franchisee as of the date of termination corresponding to the defective Services.