What are some of the factors Belocal considers when reviewing a proposed item or supplier?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
If you wish to use any service, vendor, supplier, or type or brand of item, that is not currently approved by us, you must notify us in writing of your desire to do so and submit to us (or to an independent party we designate) specifications, photographs, samples and/or other information we request. We may also inspect the supplier's facilities, software, security systems, or procedures. Within a reasonable time, which typically will not exceed 45 days after you provide us with notification and the information we request (although this time period can vary based on the type of product to be supplied, the location of the proposed supplier, the responsiveness of the proposed supplier, and other factors), we will determine whether such item(s) or supplier meet our standards and will notify you whether you are authorized to use such item(s) or purchase from such supplier, but we are not required to approve any particular item(s) or supplier. We are not required to permit you to contract with alternative suppliers, even if they meet our criteria. When reviewing an item or supplier, we consider various factors, including, but not limited to, pricing, quality, consistency, efficiency, effectiveness, control of and protection of proprietary information, ability to service the entire franchise system, data security, credit worthiness, and solvency. We also have the right to revoke, in our sole discretion, the approval of any item or supplier that fails to continue to meet our standards. At our request, you must pay or reimburse us for our reasonable expenses incurred in the supplier/item approval process (whether or not approval of the supplier is granted). We do not issue our supplier approval standards and specifications to franchisees. If we revoke our approval, we will provide you 60 days' prior written notice of the revocation.
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, if a franchisee wishes to use a service, vendor, supplier, or item that Belocal has not already approved, the franchisee must submit a written notification with specifications, photographs, samples, and any other information Belocal requests. Belocal may also inspect the supplier's facilities, software, security systems, or procedures. Belocal will then determine if the item or supplier meets their standards.
Belocal considers various factors when reviewing a proposed item or supplier. These factors include pricing, quality, consistency, efficiency, effectiveness, control and protection of proprietary information, ability to service the entire franchise system, data security, credit worthiness, and solvency. However, Belocal is not required to approve any particular item or supplier, nor are they required to permit franchisees to contract with alternative suppliers, even if they meet Belocal's criteria.
Belocal also has the right to revoke approval of any item or supplier that fails to continue meeting their standards. If Belocal revokes approval, they will provide 60 days' prior written notice. The franchisee may be required to pay or reimburse Belocal for reasonable expenses incurred during the supplier/item approval process, regardless of whether approval is granted. This process ensures that Belocal maintains control over the quality and standards of its franchise system, but it also means franchisees have limited flexibility in choosing suppliers and may incur additional costs for seeking approval of new ones.