How does Belocal's Item 11 obligation to provide initial training relate to the franchisee's obligation for pre-opening purchases/leases mentioned in Item 9?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Agreement | Disclosure Document |
|---|---|---|
| Item | ||
| b. Pre-opening purchases/leases | Not applicable | Items 7, 8, and 11 |
Pre-Opening Obligations: Before you open the Franchised Business, we or our designee will:
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- Provide initial training to you. (Franchise Agreement, Sections 5.D. and 6.E.)
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- Give you a list of any approved or designated suppliers and other written specifications for required or recommended goods and services. Other than providing you with the software described below, we do not provide or deliver any of the items you need for operations. (Franchise Agreement, Section 6.D.)
(1) Franchisee must successfully complete, as Franchisor determines, Franchisor's initial training program prior to commencing operations of the Franchised Business, which must be no later than 60 days after the Effective Date of this Agreement.
Initial training is provided at no additional charge to Franchisee, but Franchisee is responsible for all other costs associated with the training, which may include transportation, lodging, meals, wages, and other travel-related expenses.
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Item 11 outlines Belocal's pre-opening obligations to the franchisee, which include providing initial training. This training is a key component of the support Belocal offers before the franchisee commences operations. Specifically, Belocal commits to providing initial training to the franchisee, as referenced in Sections 5.D. and 6.E. of the Franchise Agreement.
Item 9 details the franchisee's obligations, and it indicates that pre-opening purchases and leases are the franchisee's responsibility, as seen in Items 7, 8, and 11 of the Disclosure Document. While Belocal provides initial training, it does not supply the physical items or leases needed to start the business. Item 11 clarifies that Belocal will give a list of approved or designated suppliers and written specifications for required or recommended goods and services, but the franchisee is responsible for procuring these items.
Therefore, Belocal's obligation to provide initial training is separate from the franchisee's obligation to handle pre-opening purchases and leases. The training equips the franchisee with the knowledge to operate the business, while the franchisee must independently secure the necessary physical resources. The initial training program must be completed no later than 60 days after the Effective Date of the Franchise Agreement. The franchisee is responsible for all costs associated with the training, including transportation, lodging, meals, wages, and other travel-related expenses.