What factors may Belocal's franchisor consider when reviewing an item or supplier?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
When reviewing an item or supplier, Franchisor may 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.
At Franchisor's request, Franchisee must pay or reimburse Franchisor for Franchisor's reasonable expenses incurred in the supplier/item approval process (whether or not approval of the supplier is granted).
Franchisor has the right to require that its representatives be permitted to inspect the proposed supplier's business premises, software, security systems, or procedures, and require that samples from the proposed supplier be delivered, if applicable, either to Franchisor or to an independent laboratory designated by Franchisor, for testing.
A charge, not to exceed the cost of the inspection and of the test (including Franchisor's administrative costs attributable to both), must be paid by Franchisee or the supplier.
Franchisor reserves the right, at its option, to re-inspect from time to time the business premises and products of any approved supplier.
Franchisor has the right to revoke, in its sole discretion, the approval of any item or supplier that fails to meet Franchisor's standards.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, when reviewing a potential item or supplier, Belocal may consider various factors. These factors include pricing, quality, consistency, efficiency, and effectiveness. Belocal also considers the control and protection of proprietary information, the ability of the supplier to service the entire franchise system, data security, creditworthiness, and solvency.
This means that if a franchisee wants to use a supplier that is not already approved by Belocal, the supplier and the products they offer will be carefully vetted. Belocal wants to ensure that any approved supplier can meet the demands of the entire franchise system and that the quality of the products or services meets Belocal's standards.
Belocal also has the right to inspect the supplier's business premises, software, security systems, and procedures. They can also require samples for testing, either by Belocal or an independent laboratory. The franchisee may have to cover the costs of these inspections and tests, regardless of whether the supplier is ultimately approved. Belocal also reserves the right to re-inspect approved suppliers and can revoke approval if a supplier fails to meet their standards.