Does the Belocal franchise agreement allow for oral agreements?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (C) The term "Confidential Information" means information and know-how, oral, visual, or written, and documents relating to Franchisor, its affiliates, the Franchised Business, and any publication Furnished by Franchisor or its affiliates, or representatives of Franchisor, to Covenantor.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement considers oral information as confidential. The agreement defines "Confidential Information" to include information and know-how, whether oral, visual, or written, and documents relating to Belocal, its affiliates, the Franchised Business, and any publication furnished by Belocal or its affiliates, or representatives of Belocal, to the Covenantor.
This means that any oral information shared by Belocal with the franchisee is considered confidential and protected under the franchise agreement. This places a responsibility on the franchisee to maintain the confidentiality of such information. It also suggests that while the entire agreement may not be oral, certain oral communications are recognized as part of the confidential relationship.
While the FDD acknowledges oral agreements as confidential, prospective franchisees should seek clarification from Belocal regarding the enforceability and scope of oral agreements beyond confidentiality. It is important to understand what other types of agreements or modifications to the franchise agreement must be in writing to be legally binding.