Upon termination, expiration, or transfer of the Belocal agreement, what rights does the franchisee assign to the franchisor?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- B. Upon the expiration or termination of this Agreement (including termination following transfer, if applicable), all rights granted to Franchisee hereunder shall immediately terminate, and Franchisee and its Principals must:
- (1) Immediately cease to conduct operations of the Franchised Business and cease holding themselves out as a franchisee (or a principal of a franchisee) of Franchisor (except for purposes of disclosing past experience on a resume);
- (2) Promptly discontinue all use of the Marks, Copyrighted Materials, and Confidential Information and take appropriate action to return to Franchisor, or deliver to the transferee if Franchisor so designates, all Copyrighted Materials and Confidential Information in Franchisee's possession or within its control;
- (3) Pay all amounts due under this Agreement;
- (4) Pay to Franchisor all damages, costs, and expenses, including reasonable attorney's fees and enforcement costs, incurred by Franchisor in connection with any of Franchisee's default(s) under this Agreement;
- (5) Comply with the covenants set forth in Section 7.;
- (6) At Franchisor's option, assign to Franchisor, or if applicable, the transferee, all rights, control, and access to any business listings and Online Presences (including accounts, credentials, and login information) and telephone numbers (including personal cellphone numbers) related to or associated with the Franchised Business and execute all forms and documents required by Franchisor to transfer such items to Franchisor or, if applicable, the transferee. Franchisee agrees to use different telephone numbers, business listings, and Online Presences in connection with any subsequent business conducted by Franchisee. Franchisor has the right to prohibit Franchisee's continued control of, use of, or access to such Online Presences;
- (7) Comply with Franchisor's instructions related to the Technology and Franchised Business Data;
- (8) Pay in full all of the creditors and suppliers of the Franchised Business and/or the Publication within 15 days after the expiration or termination of this Agreement;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, the franchisee must assign several rights to Belocal, including all rights, control, and access to any business listings and Online Presences (including accounts, credentials, and login information) and telephone numbers (including personal cellphone numbers) related to or associated with the Franchised Business. The franchisee must also execute all forms and documents required by Belocal to transfer such items to Belocal or, if applicable, the transferee.
Belocal retains the right to prohibit the franchisee's continued control, use, or access to such Online Presences. The franchisee also agrees to use different telephone numbers, business listings, and Online Presences in connection with any subsequent business conducted by the franchisee. This ensures that after the franchise agreement ends, the franchisee cannot continue to benefit from the Belocal brand's established online presence and customer base.
Additionally, Belocal is appointed as the franchisee's attorney-in-fact for assigning any listings to Belocal or its designated agent, or for taking any other actions required of the franchisee under the agreement. This appointment grants Belocal full authority to act on behalf of the franchisee to transfer or modify such listings, and this power of attorney is effective for two years from the date of expiration or termination of the franchise agreement. This ensures Belocal can manage the transfer of online assets even if the franchisee is uncooperative.