Under what section of the Belocal Franchise Agreement are the franchisor'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, the franchisor's rights to terminate the franchise agreement with cause are detailed in Section 10 of the agreement. The specific conditions that constitute 'cause' for termination are further broken down into curable defaults, as defined in Section 10.D., and non-curable defaults, as outlined in Sections 10.B. and 10.C.
Curable defaults that could lead to termination if not resolved within the established cure periods include failing to meet deadlines, not operating the business according to Belocal's standards, not maintaining content standards, failing to submit content or enough content, not returning commissions, not paying suppliers or staff, unprofessional interactions with clients or other franchisees, and repeated complaints. Non-curable defaults include insolvency, assignment for the benefit of creditors, bankruptcy filings, inability to pay debts, receivership, unsatisfied judgments, dissolution, abandonment of the business, unauthorized transfer, misuse of copyrighted materials or confidential information, failure to comply with covenants, misuse of the systems or marks, and material misrepresentations.
These termination rights are typical in franchise agreements, allowing Belocal to protect its brand and system standards. However, the specific list of defaults and the cure periods can vary significantly between franchise systems. A prospective Belocal franchisee should carefully review Section 10 and related sections to understand their obligations and the potential consequences of failing to meet them. Understanding these provisions is crucial for assessing the risks and responsibilities associated with the Belocal franchise.