Does the Belocal agreement restrict the Covenantor's ability to communicate with government agencies regarding the Franchised Business?

According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement does not restrict the Covenantor's ability to communicate with government agencies and officials regarding the Franchised Business. This means that a Covenantor, typically an owner or someone with a significant role in the franchise, is free to communicate with government entities about the business without fear of violating the franchise agreement. This clause ensures transparency and allows the Covenantor to address any regulatory or compliance matters that may arise.

This provision protects the Covenantor's right to interact with government agencies, which is crucial for addressing issues like permits, licenses, and regulatory compliance. It prevents Belocal from using the franchise agreement to silence or control communication with government bodies. This is a standard practice in franchising to ensure franchisees can meet their legal and ethical obligations.

This clause provides clarity and reassurance to potential Covenantors that they will not be penalized for communicating with government agencies regarding the Belocal franchised business. It aligns with principles of transparency and regulatory compliance, which are important for the long-term health and sustainability of the franchise.