For a Belocal franchise, who must sign the Principals' Undertaking?

According to Belocal's 2025 Franchise Disclosure Document, the Principals that Belocal designates must sign the Principal's Undertaking, which is included as Attachment C to the Franchise Agreement. Attachment E lists the Principals that Belocal designates.

The Principals' Undertaking is a legally binding agreement where the designated individuals agree to certain obligations and responsibilities related to the franchise. By signing this undertaking, the Principals acknowledge they have read the Franchise Agreement and that their execution of the Principal's Undertaking is a condition for Belocal entering into the agreement with the franchisee.

The Principals also agree to be bound by specific sections of the Franchise Agreement, such as those pertaining to legal compliance, confidentiality, non-competition, use of marks and copyrighted materials, transfer and assignment, and dispute resolution. If a Principal is an Owner, they make all of the covenants, representations, and warranties set forth in Sections 7.B and 7.D of the Agreement. This ensures that the individuals with significant control or ownership in the franchise are personally committed to upholding the terms of the agreement and protecting Belocal's interests.

Furthermore, the Principal agrees to act as a surety and guarantor for the franchisee's financial obligations under the Franchise Agreement, including any indemnity payments. This means that the Principal is jointly and individually liable for the franchisee's debts and other liabilities to Belocal. Belocal can pursue action against the Principal directly, even without first pursuing action against the franchisee. This provides Belocal with an additional layer of financial security and recourse in case of default or non-compliance by the franchisee.