Is Belocal liable for any damages arising out of the franchisee's operation of the franchised business?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Franchisee nor Franchisor shall be obligated by, or have any liability under, any agreements or representations made by the other, nor shall Franchisor be liable for any damages to any person or property directly or indirectly arising out of Franchisee's operation of the Franchised Business, whether or not caused by Franchisor's negligence or willful action or failure to act.
Franchisor shall have no liability for any sales, use, excise, gross receipts, property, income, or other taxes that Franchisee might incur in connection with Franchisee's operation of the Franchised Business.
Franchisee shall retain control over Franchisee's own work schedule and determine the hours Franchisee works on any given day.
Franchisee shall use his or her own equipment and materials.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal is not liable for any damages to any person or property that directly or indirectly arise out of the franchisee's operation of the franchised business. This holds true regardless of whether the damages are caused by Belocal's negligence, willful action, or failure to act.
This provision emphasizes the independent contractor relationship between Belocal and its franchisees. Franchisees are responsible for managing their own work schedules and using their own equipment and materials, further solidifying their independent status. Belocal also bears no responsibility for the franchisee's sales, use, excise, gross receipts, property, income, or other taxes incurred while operating the Belocal franchise.
This section of the FDD clarifies that franchisees are solely responsible for the liabilities and obligations arising from their business operations. Prospective franchisees should carefully consider this aspect, as it means they will be the primary party responsible for any damages, claims, or legal issues that may arise from their business activities.