Can Belocal's franchisor change the number of approved suppliers at any time?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must comply with all of Franchisor's requirements relating to the purchase of products, supplies, and/or services used or offered by the Franchised Business and if required, must purchase such items and/or services from suppliers approved by Franchisor, including without limitation payroll processing and insurance.
Franchisee acknowledges and agrees that Franchisor may change the number of approved suppliers or distributors at any time and may designate itself, an affiliate, or a third party as the exclusive source for any or all items or services.
Franchisor or its affiliates may receive payments, discounts, or other compensation from suppliers on account of the suppliers' dealings with Franchisor, Franchisee, or other franchisees.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal may change the number of approved suppliers at any time. As a Belocal franchisee, you must adhere to Belocal's requirements regarding the purchase of products, supplies, and services. This includes purchasing these items from suppliers approved by Belocal, such as those for payroll processing and insurance.
Belocal retains the right to modify the list of approved suppliers or distributors whenever it chooses. Furthermore, Belocal can designate itself, an affiliate, or a third party as the exclusive provider for any or all items or services required for the franchise.
This policy has significant implications for a prospective Belocal franchisee. It means that the franchisee may be required to switch suppliers at any time, potentially disrupting established relationships or requiring them to adapt to new systems. Additionally, the franchisee may be obligated to purchase goods or services from Belocal or its affiliates, which may or may not be the most cost-effective option. It is important to note that Belocal or its affiliates may receive compensation from the approved suppliers based on their dealings with Belocal and its franchisees.