Does the California Addendum supplement Item 3 of the Belocal disclosure document with language regarding orders from national securities associations or exchanges?

According to Belocal's 2025 Franchise Disclosure Document, the California Addendum does supplement Item 3 with specific language. This addition states that neither Belocal nor any person or franchise broker listed in Item 2 is subject to any current order from a national securities association or exchange that would suspend or expel them from membership. This inclusion ensures prospective franchisees in California are informed about the legal standing of Belocal and its representatives concerning securities regulations.

This disclosure is important for potential Belocal franchisees in California as it provides assurance that Belocal and its associated parties are in good standing with national securities associations or exchanges. The reference to the Securities Exchange Act of 1934 provides a legal framework for this statement, ensuring compliance and transparency. This information helps franchisees make informed decisions, knowing that Belocal is not facing any regulatory actions related to securities violations.

Franchisors often include state-specific addenda to address specific legal requirements or provide additional disclosures required by state franchise laws. The inclusion of this language in the California Addendum reflects California's regulatory environment and its focus on protecting franchisees by ensuring transparency and compliance with securities regulations. Prospective franchisees should carefully review all addenda to understand their rights and obligations under the franchise agreement within their specific state.