Can Belocal disapprove previously approved advertising plans and materials?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Materials: You must obtain our prior approval for all advertising and promotional plans and materials that you desire to use to promote your Franchised Business and that we have not prepared or previously approved. We will approve or disapprove such plans and materials within 14 days from the date we receive your plans and materials. We reserve the right to disapprove at any time any plans and materials we have previously approved, and you must promptly discontinue using any promotional or advertising plans or materials upon notice from us to do so.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–35)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal retains the right to disapprove advertising and promotional materials, even if they were previously approved. This means that a Belocal franchisee must stop using any promotional or advertising materials immediately upon receiving notice of disapproval from Belocal.
This provision gives Belocal significant control over the franchisee's advertising and promotional activities. While initial approval is required, Belocal can later change its mind and require the franchisee to discontinue using previously approved materials. This could lead to unexpected costs for the franchisee, who may have invested time and money in developing and implementing these materials.
For a prospective Belocal franchisee, this highlights the importance of carefully reviewing all advertising and promotional materials with Belocal and understanding the potential for changes in approval. It would be prudent to inquire about the reasons why Belocal might revoke approval and what recourse a franchisee has in such a situation. This clause underscores the need for franchisees to maintain open communication with Belocal regarding marketing strategies and to be prepared to adapt quickly to any changes in direction.
This level of franchisor control over advertising is not uncommon in franchising, as franchisors seek to maintain brand consistency and protect their trademarks. However, the ability to retroactively disapprove materials adds an extra layer of risk for the franchisee.