If a Belocal franchisee violates privacy laws, data protection policies, or consumer protection laws, what are the potential consequences?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee Indemnifying Parties agree to hold harmless, defend and indemnify Indemnitees from and against any and all losses, expenses, judgments, claims, attorney fees and damages arising out of or in connection with any claim or cause of action in which Indemnitees shall be a named defendant and which arises, directly or indirectly, out of the operation of, or in connection with a Security Breach or Franchisee Indemnifying Parties' violation of any Privacy Law, Data Protection and Security Policies, consumer protection-related law or regulation, email marketing and other marketing laws and regulations, and the PCI-DSS.
- (6) Personal Information Consent and Requests.
Franchisee is responsible for obtaining any required consent to the collection, use, storage, processing, and sharing of Personal Information from all parties from which it is required to obtain consent under the Privacy Laws or Data Protection and Security Policies.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee's violation of privacy laws, data protection policies, or consumer protection laws can lead to significant financial and legal repercussions. Belocal franchisees are required to comply with all applicable international, federal, state, and local laws related to privacy and data protection, as well as the Payment Card Industry Data Security Standard (PCI-DSS). They must also adhere to Belocal's Data Protection and Security Policies, which may be modified by Belocal at any time, with the franchisee required to comply within 30 days of notice.
A Belocal franchisee is responsible for obtaining consent for the collection, use, storage, processing, and sharing of personal information. Failure to comply with these obligations or a security breach can result in the franchisee being liable for reimbursement to Belocal for all reasonable Notification and Remediation Related Costs. These costs include expenses related to notifying affected individuals and regulators, establishing call centers, engaging consultants, and covering legal and accounting fees associated with investigating and responding to the breach.
Furthermore, the Belocal franchisee is obligated to indemnify Belocal against any losses, expenses, judgments, claims, attorney fees, and damages arising from any claim or cause of action related to a security breach or the franchisee's violation of privacy laws, data protection policies, consumer protection laws, email marketing regulations, or the PCI-DSS. This indemnification clause means the franchisee could be responsible for covering Belocal's legal costs and any financial penalties resulting from the franchisee's non-compliance. The franchisee is also responsible for compliance with all laws pertaining to emails and consumer protection laws.