According to the Belocal FDD, what are 'Principals'?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a corporation, partnership, limited liability company, or other entity, certain provisions of the Franchise Agreement will apply to your owners, officers, directors, and limited liability company managers ("Principals"). These are addressed in this disclosure document where appropriate. As used in this disclosure document, an "affiliate" of a named person is any person or entity that is controlled by, controlling or under common control with such named person, and includes parents and subsidiaries of the named person.
N2 Franchising, LLC, was a Delaware limited liability company that was formed on October 26, 2016. On September 6, 2019, N2 Franchising, LLC converted to N2 Franchising, Inc., a Delaware corporation. Our principal business address is 9151 Currency Street, Irving, Texas 75063. We have no parents or other predecessors.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if the franchisee is a corporation, partnership, limited liability company, or other entity, the owners, officers, directors, and limited liability company managers are considered "Principals".
Belocal may require these Principals to sign a Principals' Undertaking Agreement. This agreement would legally bind them to certain provisions of the Franchise Agreement. These provisions include covenants against competition (for Owners only), solicitation, and disclosure of confidential information. The agreement also covers restrictions on transfer and dispute resolution procedures.
Furthermore, the Principals will guarantee any amounts the franchisee owes to Belocal. This means that the individuals in these roles are personally responsible for the financial obligations of the franchise, adding another layer of security for the franchisor.