Does the Belocal franchise agreement state that restrictions are reasonable and necessary for the protection of the value of the Marks?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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associated with the Marks. Franchisee acknowledges and agrees that the restrictions set forth in this Agreement are reasonable and necessary for the protection of value of the Marks and the goodwill associated with the Marks, that any violation of this Agreement would cause substantial and irreparable injury to Franchisor, and that Franchisor would not have entered into a business relationship with Franchisee or entered into this Agreement without receiving Franchisee's unrestricted promise to use the Marks only in the manner authorized by Franchisor. Franchisee shall not use any of the Marks in connection with Independent-Staff-facing labor and employment materials.
D. An "Online Presence" includes, but is not limited to, (1) a website, other webpages, URLs, or domain names; (2) accounts, pages, handles, or profiles on social media sites, social networking sites, news sites and groups, online, internet, or digital directories, video, photography, audio, podcast, and messaging services, blogs, or forums; (3) e-commerce sites or accounts;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement explicitly states that the restrictions outlined within it are considered reasonable and necessary to protect the value and goodwill associated with Belocal's Marks. The agreement emphasizes that any violation of these restrictions would cause substantial and irreparable harm to Belocal.
This acknowledgement is a crucial element of the franchise agreement, as Belocal would not enter into a business relationship with a franchisee without receiving assurance that the Marks will be used only in a manner authorized by Belocal. This highlights the importance Belocal places on protecting its brand identity and reputation.
Furthermore, the agreement includes a section titled "Reasonableness of Covenants," where both the franchisee and any principals involved agree that the covenants within the agreement contain reasonable limitations regarding time, geographical area, and scope of activity. They also acknowledge that these limitations do not impose a greater restraint than necessary to safeguard Belocal's goodwill or other legitimate business interests. This reinforces the idea that the restrictions are designed to be fair and balanced, protecting both the franchisor's interests and the franchisee's ability to operate their business.