Under what section of the Belocal Franchise Agreement is the length of the franchise term defined?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the | Section 2.A. | Three-year initial term |
| franchise term | ||
| b. | Section 2.B. | No right to renew |
| Renewal or extension | ||
| of the term |
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 length of the franchise term is defined in Section 2.A. of the Franchise Agreement. The initial term for a Belocal franchise is three years.
This means that a new Belocal franchisee will have the right to operate their franchise for a period of three years from the commencement of the agreement, assuming they comply with all the terms and conditions outlined in the Franchise Agreement. After this initial three-year period, the franchisee must cease operations unless the agreement is extended.
However, the FDD states that there is no right to renew the Belocal franchise agreement. This is an important factor for prospective franchisees to consider, as it means they will not have an automatic option to continue operating their Belocal franchise beyond the initial three-year term. Franchisees should discuss with Belocal the possibility of extending the agreement and under what conditions an extension might be granted.