What happens if entering into the Belocal agreement violates a pre-existing confidentiality agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
For clarity, any attempt by Franchisee (using any method) to upload, download, or copy into any format any Confidential Information that is not directly related to the Franchised Business, including without limitation, client and advertiser information, shall constitute grounds for immediate termination of this Agreement.
B. In-term Noncompetition. Franchisee and Owners represent that they are not currently working with or for any Person engaged in any Competitive Business (as defined in Section 7.G. below). Franchisee and each Owner specifically acknowledge that they will receive valuable Confidential Information beyond their present skills and experience and that such Confidential Information provides a competitive advantage. In consideration for gaining access to Confidential Information, the use of the Marks, and other valuable consideration associated with the grant of the right to operate the Franchised Business, Franchisee and each Owner agree that, during the Term of this Agreement, neither Franchisee nor any Owner shall, for themselves, or through or on behalf of or in conjunction with any other person or entity, own, maintain, operate or engage in any Competitive Business or provide any Competitive Services
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
Based on the 2025 Belocal Franchise Disclosure Document, the franchisee and their owners must acknowledge that they are not currently working with or for any person engaged in any competitive business. They also acknowledge that they will receive valuable confidential information that provides a competitive advantage.
In consideration for gaining access to confidential information, the use of Belocal's marks, and other valuable considerations associated with the right to operate the franchised business, the franchisee and each owner agree that, during the term of the agreement, neither the franchisee nor any owner shall, for themselves, or through or on behalf of or in conjunction with any other person or entity, own, maintain, operate, or engage in any competitive business or provide any competitive services. This restriction applies at any location within the United States, its territories or commonwealths, or any other country, province, state, or geographic area in which Belocal or its affiliates have used, sought registration of, or registered the marks or similar marks or operated or granted others the right to operate a business under the marks or similar marks.
Therefore, if entering into the Belocal agreement violates a pre-existing confidentiality agreement, it could be grounds for immediate termination of the agreement. The franchisee and owners should carefully review any existing agreements to ensure there are no conflicts before signing the Belocal franchise agreement.