How must a Belocal franchisee hold itself out to the public during the term of the agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term of this Agreement, Franchisee must hold itself out to the public as an independent contractor conducting the Franchised Business pursuant to the rights granted by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, during the term of the franchise agreement, a franchisee must present themselves to the public as an independent contractor who is operating the Belocal franchised business under the rights granted to them by Belocal. This means franchisees must ensure that all business dealings and public interactions clearly communicate their independent status.
This requirement is fairly standard in franchising, as it reinforces the legal distinction between the franchisor and the franchisee. It helps to protect Belocal from potential liabilities arising from the franchisee's operations. By operating as an independent contractor, the franchisee is responsible for their own business decisions, compliance with local laws, and management of their staff.
For a prospective Belocal franchisee, this means ensuring that all marketing materials, business cards, and other public-facing communications clearly state that they are an independent contractor operating a Belocal franchise. It also means managing their business in a way that reflects this independent status, such as setting their own work hours and using their own equipment, as detailed elsewhere in the FDD. Franchisees must also communicate to their employees that the franchisee, not Belocal, is their employer, and ensure that no employment-related documents reference Belocal's name.