Is the Belocal franchisor liable for downtime that may occur to any Online Presence?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall not be liable for downtime that may occur to any such Online Presence, whether such downtime is caused by Franchisor or a third party.
Franchisor shall have the right, but not the obligation, to designate one or more webpage(s) or other form of Online Presence to describe Franchisee, the Franchised Businesses, the Publication, the N2 publications, Franchisor, Franchisor's affiliates, and the Marks, with such webpage(s) or Online Presence to be located within Franchisor's website or another Online Presence.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal is not liable for downtime that may occur to any Online Presence. This includes downtime caused either by Belocal itself or by a third party. An "Online Presence" is broadly defined to include websites, social media accounts, e-commerce sites, online advertising, mobile applications, and any other type of online tool or service.
This means that if a Belocal franchisee experiences any interruption or unavailability of their online platforms, they cannot hold Belocal responsible for any resulting losses or damages. This could include lost revenue, damage to reputation, or other related costs. The franchisee bears the risk of such downtime, regardless of the cause.
This provision highlights the importance of franchisees understanding the limitations of Belocal's liability regarding online operations. While Belocal may provide support and resources for establishing and maintaining an online presence, the ultimate responsibility for ensuring its reliability rests with the franchisee. Prospective franchisees should consider this factor when evaluating the potential risks and rewards of investing in a Belocal franchise.