From whom else, besides Principals, might Belocal Franchisees be required to obtain confidentiality, non-compete, and non-solicit covenants?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to require and obtain the execution of confidentiality, non-compete, and non-solicit covenants similar to those set forth in this Section 7. from all of Franchisee's Principals not signing the Principals' Undertaking. At Franchisor's request, Franchisee agrees to require and obtain the execution of confidentiality, non-compete, and non-solicit covenants similar to those set forth in Section 7. from any other of Franchisee's Independent Staff receiving access to Confidential Information. These covenants must be substantially in the forms set forth in Attachment D-1 and/or D-2; however, Franchisor reserves the right, in Franchisor's sole discretion, to decrease the scope of the covenants set forth in Attachments D-1 and D-2 or eliminate such covenants altogether for any person that is required to execute such agreement.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees may be required to obtain confidentiality, non-compete, and non-solicit covenants from parties other than just the Principals. Specifically, Belocal franchisees must obtain these covenants from all of the franchisee's Principals who are not already signing the Principals' Undertaking.
Additionally, at Belocal's request, franchisees must obtain these covenants from any of the franchisee's Independent Staff who receive access to Confidential Information. These covenants must be substantially similar to the forms set forth in Attachment D-1 and/or D-2.
Belocal, however, retains the right to decrease the scope of these covenants or eliminate them altogether for any person required to execute such an agreement. This provides Belocal with the flexibility to tailor the requirements based on the specific roles and access levels of individuals associated with the franchise.