Is a Belocal franchisee required to pay or reimburse Belocal for expenses incurred during the supplier/item approval process?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a franchisee may be required to pay or reimburse Belocal for reasonable expenses incurred during the supplier/item approval process. This applies when a franchisee wishes to use a service, vendor, supplier, or item that is not already approved by Belocal. This reimbursement is required whether or not the supplier or item is ultimately approved.
To initiate the approval process, the franchisee 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. Belocal will then determine whether the item or supplier meets their standards.
The review period typically does not exceed 45 days after notification and submission of required information, although this timeframe can vary. Belocal considers factors such as pricing, quality, consistency, data security, and creditworthiness when reviewing a potential supplier or item. Belocal also retains the right to revoke approval of any item or supplier if they fail to continue meeting Belocal's standards, providing 60 days' prior written notice of the revocation.