In the Belocal FDD, what term refers to the person buying the franchise?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchisor is N2 Franchising, Inc., referred to in this disclosure document as "we," "us," or "our." We refer to the person buying the franchise as "you" or "your." If you are a corporation, partnership, limited liability company, or other entity, certain provisions of the Franchise Agreement will apply to your owners, officers, directors, and limited liability company managers ("Principals"). These are addressed in this disclosure document where appropriate. As used in this disclosure document, an "affiliate" of a named person is any person or entity that is controlled by, controlling or under common control with such named person, and includes parents and subsidiaries of the named person.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the term used to refer to the person buying the franchise is "you" or "your." The FDD clarifies that if the franchisee is a corporation, partnership, limited liability company, or other entity, certain provisions of the Franchise Agreement will apply to the owners, officers, directors, and limited liability company managers, who are referred to as "Principals".
This distinction is important for prospective Belocal franchisees because it clarifies who is bound by the terms of the franchise agreement. If the franchise is owned by a business entity, the individuals controlling that entity (the Principals) may also be subject to certain obligations and liabilities under the agreement. This is a common practice in franchising, as franchisors often want to ensure that the individuals responsible for the day-to-day operations of the franchise are personally committed to upholding the brand standards and contractual obligations.
Prospective franchisees should carefully review the Franchise Agreement and related documents to understand the specific obligations and liabilities that apply to them as franchisees, as well as to any Principals involved in the business. Understanding these terms is crucial for making an informed decision about investing in a Belocal franchise and for ensuring compliance with the franchise agreement throughout the term of the franchise.