What information must a Belocal franchisee provide to Belocal regarding technology or software programs?

According to Belocal's 2025 Franchise Disclosure Document, if Belocal provides the franchisee with any technology or software programs, or requires specific cloud systems and software, Belocal maintains the right to have complete access to these systems at all times, without needing the franchisee's permission. In this case, the franchisee must provide Belocal with all passwords and other login credentials associated with the technology, software, or cloud systems upon Belocal's request.

This requirement ensures that Belocal can maintain and support the technology infrastructure used by its franchisees. It also allows Belocal to monitor compliance with its standards and protect its confidential information. The franchisee, however, retains sole responsibility for the acquisition, operation, maintenance, and upgrading of the technology and software programs, as well as the manner in which these systems interface with Belocal's and any third party's computer systems.

Belocal also has the right to establish reasonable new standards for the implementation of technology within the system, and the franchisee is obligated to abide by these standards at their own cost. This includes the possibility of paying additional or increased fees to Belocal, its affiliates, or third-party suppliers, and purchasing new or additional technology. This highlights the importance of franchisees staying updated with technological advancements and being prepared for potential costs associated with these changes.

Furthermore, Belocal franchisees are expressly prohibited from utilizing any form of artificial intelligence (AI) in the operation, management, or marketing of the franchised business without Belocal's express written approval, except as permitted by and in accordance with the Franchise Brand Standards Manual. This prohibition includes AI-driven customer service, data analysis, image generation, text generation, code generation, sound generation, and decision-making tools. Any breach of this provision will be considered a material violation of the Franchise Agreement.