Does the Belocal franchise agreement require the franchisee to accept changes to the system?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Franchisee understands and agrees that Franchisor may operate and change the System and Franchisor's business in any manner that is not expressly and specifically prohibited by this Agreement.
Without limitation of the foregoing, Franchisee acknowledges that the products and services to be offered by Franchisee may be supplemented, improved, or otherwise modified from time to time by Franchisor.
H. Office; Equipment.
- (2) Franchisee must acquire and use any computer (including tablets), hardware, cloud systems, artificial intelligence tools, and software for the operation of the Franchised Business that Franchisor requires, including any enhancements, additions, substitutions, modifications, upgrades, and specific models or versions ("Technology").
Franchisor may also require Franchisee to license from Franchisor, or others Franchisor designates, any computer software Franchisor develops or acquires for use in connection with the Franchised Business and pay any fees associated with any such software licenses.
Franchisee agrees that changes to Technology are dynamic and unpredictable.
To provide for inevitable but unpredictable changes to technological needs and opportunities, Franchisee agrees that Franchisor shall have the right to establish, in writing, reasonable new standards for the implementation of Technology in the System; and Franchisee agrees that Franchisee will abide by any such reasonable new standards established by Franchisor, at Franchisee's sole cost and expense.
Franchisee may be required to pay additional or increased fees to Franchisor, Franchisor's affiliates, or third-party suppliers, as a result of changes to Technology; and Franchisee may be required to purchase new or additional Technology.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees must generally accept changes to the Belocal system. The agreement states that Belocal may modify the system and its business operations in any way not explicitly prohibited by the franchise agreement. This includes the ability to supplement, improve, or otherwise modify the products and services offered by the franchisee.
Specifically, Belocal has the right to establish new standards for technology implementation within the system, and franchisees are obligated to comply with these standards at their own expense. These changes to technology may also require franchisees to pay additional or increased fees to Belocal, its affiliates, or third-party suppliers, and may also require franchisees to purchase new or additional technology.
This aspect of the franchise agreement gives Belocal considerable latitude to evolve its business model and operational requirements. For a prospective franchisee, this means they must be prepared to adapt to changes and invest in new technologies or services as directed by Belocal. Failure to comply with these changes could potentially lead to a breach of the franchise agreement.