What document must the Principals designated by Belocal sign?

According to Belocal's 2025 Franchise Disclosure Document, the Principals that Belocal designates must sign the Principal's Undertaking, which is Attachment C to the Franchise Agreement. This requirement applies if the franchisee is a corporation, partnership, limited liability company, or other legal entity. Attachment E of the Franchise Agreement should accurately and completely describe the ownership interests in the franchisee entity.

The Principal's Undertaking essentially makes the Principals a surety and guarantor for the franchisee's financial obligations under the agreement. This means the Principals are jointly, individually, and severally liable for all amounts the franchisee owes, including any indemnity obligations. Belocal can pursue the Principals directly without first taking action against the franchisee.

Furthermore, the Principal's Undertaking includes a consent agreement where the Principal's liability isn't contingent on Belocal pursuing remedies against the franchisee or affected by the franchisee's financial issues or any amendments to the agreement. The Principal also agrees to cover all reasonable attorney's fees and costs associated with collecting amounts due or enforcing the undertaking. This ensures Belocal has multiple avenues for recourse in case of franchisee default and that the principals are fully committed to the financial obligations of the franchise.