Is a Belocal franchisee required to comply with Belocal's standards and specifications when purchasing supplies, materials, equipment, and other products and services?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
You must comply with all of our standards and specifications relating to the purchase of all supplies, materials, equipment (including computer hardware and software), and other products and services used in the Franchised Business. We formulate our standards and specifications based on a variety of factors and can issue such standards and specifications to you from time to time, including in writing in the Franchise Brand Standards Manual. If we have approved suppliers for any supplies, products, and/or services used or offered by your Franchised Business, you must use those suppliers. We may change the number of approved suppliers at any time and may designate ourselves, an affiliate, or a third party as the exclusive source for any particular item or service. We may profit from your purchases and leases from approved suppliers, and we and/or our affiliates may receive payments, fees, commissions, or reimbursements from such suppliers in respect of your purchases and leases.
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.
Business Cards: You must use the third-party provider we designate to purchase your business cards.
Digital Signature Software: We require you to use our approved vendors for digital signature software. You must not use any digital signature software we have not approved.
Advertising Materials: You must obtain our prior approval for all advertising and promotional plans and materials that you desire to use to promote your Franchised Business and that we have not prepared or previously approved. We will approve or disapprove such plans and materials within 14 days from the date we receive your plans and materials. We reserve the right to disapprove at any time any plans and materials we have previously approved, and you must promptly discontinue using any promotional or advertising plans or materials upon notice from us to do so.
Social Media Management: If you hire a third-party to manage your social media, you must use only our approved social media management vendors.
Other Services: We have the right to require you to use only our approved vendors for client relationship management, advertisement strategy, photography, and advertisement material creation services. Our current policy is to allow our franchisees to use publishing assistants or vendors that we have not approved in advance, provided the assistants or vendors comply with the standards set forth in our Franchise Brand
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, franchisees must adhere to Belocal's standards and specifications when purchasing all supplies, materials, equipment, and other products and services used in their franchised business. Belocal formulates these standards based on various factors and may issue them in writing, including in the Franchise Brand Standards Manual. If Belocal has approved suppliers for any supplies, products, or services, franchisees are required to use those suppliers. Belocal retains the right to change the number of approved suppliers and may designate itself, an affiliate, or a third party as the exclusive source for any particular item or service. Belocal may also profit from franchisee purchases and leases from approved suppliers, and Belocal and its affiliates may receive payments, fees, commissions, or reimbursements from such suppliers.
If a Belocal franchisee wishes to use a service, vendor, supplier, or item not currently approved by Belocal, they must notify Belocal in writing and submit any requested specifications, photographs, samples, or other information. Belocal may also inspect the supplier's facilities, software, security systems, or procedures. Within a reasonable time, typically not exceeding 45 days after receiving the notification and information, Belocal will determine whether the item or supplier meets its standards and will notify the franchisee of its decision. However, Belocal is not required to approve any particular item or supplier and is not required to permit franchisees to contract with alternative suppliers, even if they meet Belocal's criteria.
Belocal considers various factors when reviewing an item or supplier, including 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 has the right to revoke approval of any item or supplier that fails to continue to meet its standards, providing 60 days' prior written notice of the revocation. At Belocal's request, the franchisee must pay or reimburse Belocal for its reasonable expenses incurred in the supplier/item approval process, regardless of whether approval is granted.
Specifically, Belocal requires franchisees to use their designated third-party provider for business cards and approved vendors for digital signature software. Franchisees must also obtain Belocal's prior approval for all advertising and promotional plans and materials not prepared or previously approved by Belocal. If a franchisee hires a third party to manage social media, they must use only Belocal's approved social media management vendors. Belocal also has the right to require franchisees to use only their approved vendors for client relationship management, advertisement strategy, photography, and advertisement material creation services.