What must a Belocal franchisee give the Franchisor advance written notice of?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Use the Confidential Information exclusively in conjunction with the operation of the Franchised Business and to carry out the obligations of Franchisee pursuant to the terms of this Agreement and not for any other purpose, and shall refrain from disclosing the Confidential Information to any third person or entity not directly associated with Franchisee, except as may be required by law. In the event Franchisee, any Principal, or any persons to whom any Confidential Information was lawfully disclosed become legally compelled (by deposition, interrogatory, request for documents, subpoena, civil investigative demand, or similar process) to disclose any of the Confidential Information, Franchisee and Principals shall provide Franchisor with prompt prior written notice of such requirement so that Franchisor may seek a protective order or other appropriate remedy and/or waive compliance with the terms hereof. In the event that such protective order or other remedy is not obtained, or that Franchisor waives compliance with the provisions hereof, Franchisee and Principals agree to furnish only that portion of the Confidential Information which Franchisee and/or Principals are advised by written opinion of counsel is legally required and to exercise best efforts to obtain assurance that confidential treatment will be accorded such disclosed Confidential Information;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee must provide the Franchisor with prompt prior written notice if they, any Principal, or anyone to whom Confidential Information was lawfully disclosed becomes legally compelled to disclose any of the Confidential Information. This compulsion can arise from various legal processes such as depositions, interrogatories, requests for documents, subpoenas, or civil investigative demands. The purpose of this notification is to allow Belocal to seek a protective order or another appropriate remedy, or to waive compliance with the confidentiality terms.
If a protective order or another remedy cannot be obtained, or if Belocal waives compliance, the franchisee and principals must only disclose the portion of Confidential Information that their counsel advises in writing is legally required. They must also make their best effort to ensure that the disclosed Confidential Information is treated confidentially.
This requirement ensures that Belocal is informed of potential breaches of confidentiality and has the opportunity to protect its Confidential Information. It also places an obligation on the franchisee to actively seek ways to maintain confidentiality even when faced with legal compulsion to disclose information.