Under what section of the Belocal Franchise Agreement are the franchisee's termination rights defined?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| of the Publication. The provisions regarding termination are subject to state law. You must comply with certain wind-down and post termination obligations. | ||
| f. | Section 10. | We may terminate because of your default(s). |
| Termination by | ||
| franchisor with "cause" | ||
| g. "Cause" defined - curable defaults | Section 10.D. | If you do not cure the following defaults within the cure periods we establish, we will have the right to terminate: failure to meet content, review, approval, processing, and other publication deadlines; failure to operate the Franchised Business in accordance with our standards; failure to maintain content that satisfies our standards; failure to timely submit content or failure to submit sufficient content; failure to return any Returnable Commissions due to us; failure to pay any fee or amount when due to a supplier or creditor; failure to pay your independent staff in accordance with law; failure to interact professionally with clients and leads of Hyport Digital or failure to comply with policy and requirements for Hyport Digital leads, clients, goods, services, and trademarks; failure to interact professionally with other franchisees, advertisers, clients, or members of Communities or Industry Groups; other non compliance; repeated complaints about the Franchised Business, Franchisee, or any Principal. Franchisor has a step-in right upon default. |
| h. "Cause" defined – non-curable defaults | Sections 10.B. and 10.C. | Insolvency; general assignment for benefit of creditors; filing of voluntary bankruptcy; filing of involuntary bankruptcy not dismissed within 60 days; admission of inability to pay debts; adjudicated bankrupt or insolvent; receivership; final judgment remains unsatisfied for 30 days or more; dissolution; execution of levy or sale after levy; abandonment or cessation of Franchised Business; unauthorized transfer; failure to comply with restrictions on use of Copyrighted Materials and confidential information; failure to comply with covenants; misuse of the Systems or Marks; material misrepresentations or breaches of representations and warranties; whether before or after the date of the Franchise Agreement, you or a Principal has |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 49–55)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisee termination rights are not explicitly detailed. However, Section 10 of the Franchise Agreement outlines the conditions under which Belocal can terminate the agreement with cause. These 'cause' provisions are further broken down into curable defaults, as described in Section 10.D., and non-curable defaults, as described in Sections 10.B. and 10.C.
Curable defaults that could lead to termination if not resolved within the specified cure periods include failing to meet deadlines, not operating the business according to Belocal's standards, failing to maintain content standards, not submitting sufficient content, failing to return commissions, not paying fees to suppliers or staff, unprofessional interactions with clients or other franchisees, and repeated complaints. Non-curable defaults include insolvency, bankruptcy, assignment for the benefit of creditors, inability to pay debts, receivership, unsatisfied judgments, dissolution, abandonment of the business, unauthorized transfer, misuse of copyrighted materials, failure to comply with covenants, and material misrepresentations.
While the document details the franchisor's termination rights extensively, it does not explicitly state the franchisee's rights to terminate the agreement. A prospective franchisee should carefully review Section 10 of the Franchise Agreement and seek clarification from Belocal regarding the circumstances under which they, as the franchisee, would be permitted to terminate the agreement. Understanding these conditions is crucial for assessing the risks and obligations associated with the franchise.