What is the Belocal franchisee's immediate obligation upon becoming aware of a Security Breach?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, if Franchisee becomes aware of any actual or suspected unauthorized access, processing, loss, use, disclosure, alteration, destruction, transfer, or other compromise or acquisition of or access to any Personal Information, whether such information is stored in paper or electronic form, or information that might reasonably expose Franchisor to any harm or prejudice of any type or actual or suspected intrusion by an unauthorized third party into Franchisee's or Franchisor's computers, networks, servers, IT resources, or paper files ("Security Breach"), Franchisee shall immediately notify the Franchisor via telephone of such matter and shall thereafter cooperate with Franchisor to investigate and remedy such matter.
Except to the extent required by applicable law, no public disclosure of any instance of such unauthorized access or breach shall be made by Franchisee unless Franchisor has authorized the provision of notice and the form of such notice in writing.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a franchisee becomes aware of a Security Breach, they must immediately notify Belocal via telephone. A Security Breach is defined as any unauthorized access, processing, loss, use, disclosure, alteration, destruction, transfer, or other compromise or acquisition of or access to any Personal Information, whether stored in paper or electronic form. It also includes any information that might reasonably expose Belocal to any harm or prejudice or any actual or suspected intrusion by an unauthorized third party into the franchisee's or Belocal's computers, networks, servers, IT resources, or paper files.
Following the initial notification, the franchisee is obligated to cooperate with Belocal to investigate and remedy the Security Breach. This cooperation is essential for Belocal to take appropriate steps to contain the breach, assess the damage, and implement measures to prevent future occurrences. The franchisee's cooperation may involve providing access to systems, data, and personnel for the purpose of the investigation.
The Belocal franchisee is restricted from making any public disclosure of the Security Breach unless Belocal has authorized the provision of notice and the form of such notice in writing, except to the extent required by applicable law. This provision ensures that Belocal maintains control over the messaging and public relations aspects of the breach, which is crucial for protecting the brand's reputation and managing potential legal liabilities. This also prevents franchisees from making statements that could be inaccurate or harmful to the brand.
It's important for prospective Belocal franchisees to understand the scope of their responsibilities in the event of a Security Breach, as outlined in the franchise agreement. This includes not only the immediate notification and cooperation requirements but also the potential financial implications, as the franchisee may be responsible for reimbursing Belocal for Notification and Remediation Related Costs arising from the breach, especially if it was directly or indirectly caused by the franchisee, its Principals, or its Independent Staff.