When a Belocal franchisee requests approval for a new supplier, what kind of information might Belocal request?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
If you wish to use any service, vendor, supplier, or type or brand of item, that is not currently approved by us, you must notify us in writing of your desire to do so and submit to us (or to an independent party we designate) specifications, photographs, samples and/or other information we request. We may also inspect the supplier's facilities, software, security systems, or procedures. Within a reasonable time, which typically will not exceed 45 days after you provide us with notification and the information we request (although this time period can vary based on the type of product to be supplied, the location of the proposed supplier, the responsiveness of the proposed supplier, and other factors), we will determine whether such item(s) or supplier meet our standards and will notify you whether you are authorized to use such item(s) or purchase from such supplier, but we are not required to approve any particular item(s) or supplier. We are not required to permit you to contract with alternative suppliers, even if they meet our criteria. When reviewing an item or supplier, we consider various factors, including, but not limited to, pricing, quality, consistency, efficiency, effectiveness, control of and protection of proprietary information, ability to service the entire franchise system, data security, credit worthiness, and solvency. We also have the right to revoke, in our sole discretion, the approval of any item or supplier that fails to continue to meet our standards. At our request, you must pay or reimburse us for our reasonable expenses incurred in the supplier/item approval process (whether or not approval of the supplier is granted). We do not issue our supplier approval standards and specifications to franchisees. If we revoke our approval, we will provide you 60 days' prior written notice of the revocation.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–35)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a franchisee wants to use a service, vendor, supplier, or a specific item that Belocal hasn't already approved, the franchisee must inform Belocal in writing. This notification needs to include any specifications, photographs, samples, or other information that Belocal requests. Belocal also has the option to inspect the supplier's facilities, software, security systems, or procedures.
Belocal will then determine if the supplier or item meets their standards and will notify the franchisee of their decision, typically within 45 days of receiving the notification and requested information. However, this timeframe can vary depending on factors such as the type of product, the supplier's location, and the supplier's responsiveness. Belocal is not obligated to approve any particular item or supplier, nor are they required to allow franchisees to contract with alternative suppliers, even if those suppliers meet Belocal's criteria.
When evaluating a potential supplier or item, Belocal considers factors such as pricing, quality, consistency, efficiency, effectiveness, control and protection of proprietary information, ability to service the entire franchise system, data security, creditworthiness, and solvency. Belocal also reserves the right to revoke approval of any item or supplier if they fail to continue meeting Belocal's standards. Franchisees may be required to pay or reimburse Belocal for reasonable expenses incurred during the supplier/item approval process, regardless of whether the approval is granted. If Belocal revokes approval, they will provide 60 days' prior written notice.