Can Belocal's franchisor make a profit on the sale of any goods or services to the franchisee?

According to Belocal's 2025 Franchise Disclosure Document, Belocal and its affiliates may profit from selling goods or services to franchisees. The franchisee agrees that Belocal and its affiliates are entitled to these profits.

This means that as a Belocal franchisee, you may be required to purchase certain goods or services directly from the franchisor or its affiliated companies. Belocal and its affiliates can set the prices for these goods and services and retain any profit margin. This arrangement is common in franchising, as it allows the franchisor to maintain quality control and consistency across all franchise locations.

However, franchisees should carefully evaluate the costs of these required purchases and compare them to market prices to ensure they are reasonable. It is also important to understand what goods and services you are required to purchase from Belocal and whether there are any alternative suppliers available. While Belocal requires prior written approval before a franchisee can purchase from an unapproved supplier, this option may allow franchisees to seek better pricing or terms. Franchisees may be required to cover the franchisor's expenses for supplier/item approval, regardless of whether approval is ultimately granted.