Does the Belocal franchise agreement require the franchisee to disclaim any proprietary interest in the Marks?

According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement stipulates that franchisees must disclaim any proprietary interest in Belocal's Marks and Copyrighted Materials. Specifically, the agreement states that the franchisee's interest in the Marks and Copyrighted Materials is solely that of a licensee. All goodwill generated through the use of the Marks in the franchised business will accrue to the benefit of Belocal.

This provision means that while franchisees are granted a limited license to use Belocal's Marks and Copyrighted Materials for operating, advertising, and promoting their franchised business, they do not acquire any ownership rights or proprietary interest in these Marks. This is a standard practice in franchising, as it ensures that the franchisor retains control over its brand and intellectual property.

For a prospective Belocal franchisee, this clause underscores the importance of adhering to Belocal's brand standards and guidelines. Any unauthorized use of the Marks or Copyrighted Materials could be a breach of the franchise agreement. Additionally, franchisees must acknowledge that the value and goodwill associated with the Belocal brand ultimately belong to the franchisor, not the individual franchisee.