Who bears the cost of implementing new technology standards established by Belocal?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
To provide for inevitable but unpredictable changes to technological needs and opportunities, Franchisee agrees that Franchisor shall have the right to establish, in writing, reasonable new standards for the implementation of Technology in the System; and Franchisee agrees that Franchisee will abide by any such reasonable new standards established by Franchisor, at Franchisee's sole cost and expense.
Franchisee may be required to pay additional or increased fees to Franchisor, Franchisor's affiliates, or third-party suppliers, as a result of changes to Technology; and Franchisee may be required to purchase new or additional Technology.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchisee is responsible for the costs associated with implementing new technology standards. Belocal retains the right to set reasonable new standards for technology implementation within the system, and the franchisee must comply with these standards at their own expense.
This means that a Belocal franchisee should be prepared to invest in technology upgrades or new systems as Belocal evolves its technology requirements. These costs can include purchasing new hardware, software, or cloud-based systems. Additionally, franchisees may be required to pay increased fees to Belocal, its affiliates, or third-party suppliers due to these technology changes.
Belocal also maintains the right to access any technology or software programs it provides to the franchisee, or requires the franchisee to use, including access to all passwords and login credentials. Franchisees are also responsible for the acquisition, operation, maintenance, and upgrading of required technology and software, and are liable for any consequences resulting from improper operation or maintenance. Franchisees are also generally prohibited from using AI in their business without express written approval from Belocal.
This arrangement places the financial burden of technology upgrades and changes squarely on the franchisee, which is a fairly common practice in franchising. Prospective franchisees should carefully consider the potential costs of ongoing technology investments when evaluating the Belocal franchise opportunity.