Is the Belocal franchisor obligated to provide consent for the franchisee to create an online presence?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not, directly or indirectly and without Franchisor's consent, which Franchisor is not obligated to provide, establish or operate an Online Presence that in any way concerns, discusses or alludes to the Franchisor, the Marks, the System, the Publication, any N2 publication, or the Franchised Business.
If Franchisee has received Franchisor's consent to create or operate an Online Presence, Franchisee must comply with the terms of Franchisor's policies.
Franchisor may revoke, in Franchisor's sole discretion, any approval for Franchisee to create or use an Online Presence.
Franchisee shall not post, and shall take such steps as necessary to ensure that its Independent Staff do not post, to any Online Presence any information relating to the Franchisor, Franchisor's affiliates, the System, the Marks, or the Franchised Business that, (i) is derogatory, disparaging, or critical of the Franchisor, the System or the Marks; (ii) is offensive, inflammatory or indecent; (iii) infringes upon the intellectual property rights of Franchisor, Franchisor's affiliates, or third parties; or (iv) harms the goodwill and/or public image of the System and/or the Marks.
Franchisor alone shall be, and at all times shall remain, the sole owner of the copyrights to all material which appears on any Online Presence, including any and all material Franchisee may furnish to Franchisor for use on an Online Presence.
However, Franchisor is not obligated to monitor or control the content of any of Franchisee's Online Presences.
For any Online Presence and identifiers related to any Online Presence Franchisee is permitted to create or use, Franchisor reserves the right, at its sole option and discretion, to have the Online Presence directly owned or controlled by Franchisor or to require any such Online Presence be transferred to Franchisor upon the termination, expiration, or transfer of this Agreement for any reason.
Upon request, Franchisee must provide Franchisor with any login credentials for any Online Presence Franchisee is authorized to create, use, or maintain.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchisor is not obligated to provide consent for a franchisee to establish or operate an online presence related to Belocal. The FDD states that franchisees must obtain the franchisor's consent before creating an online presence, but Belocal is not required to grant such consent.
This means that a prospective Belocal franchisee cannot assume they will be allowed to create their own website, social media profiles, or other online content related to their franchise. Belocal retains the right to deny permission for any such online presence. If consent is granted, the franchisee must adhere to Belocal's policies, and Belocal can revoke this approval at any time at its sole discretion.
Belocal also maintains ownership of copyrights to all material on any online presence, including material furnished by the franchisee. The franchisor has the right to directly own or control any online presence or require its transfer upon termination, expiration, or transfer of the agreement. Franchisees must provide login credentials for any authorized online presence upon request. This gives Belocal significant control over the franchisee's online activities and presence.
An "Online Presence" includes a broad range of digital assets, such as websites, social media accounts, e-commerce sites, online advertising, mobile applications, and virtual reality platforms. This comprehensive definition underscores the importance of obtaining explicit consent from Belocal before engaging in any online activities related to the franchise.
Given these stipulations, a prospective Belocal franchisee should discuss online presence and marketing strategies with the franchisor during their due diligence. Understanding Belocal's specific requirements and restrictions regarding online activities is crucial for developing an effective marketing plan and avoiding potential conflicts with the franchise agreement.