What is the name of the document that Belocal requires all Principals to sign?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
We require all Principals to sign a Principals' Undertaking (attached to the Franchise Agreement as Attachment C), binding themselves individually to certain provisions of the Franchise Agreement, including the covenants against competition (Owners only) and solicitation and those restricting use of the Marks and disclosure of confidential information, restrictions on transfer, and dispute resolution procedures. The Principals must also guaranty amounts owed by the franchisee to us or our affiliates. We do not require an Owner's spouse to sign the Principals' Undertaking or otherwise personally guaranty the performance of the Franchise Agreement. At our request, you must have any other personnel who will have access to our confidential information, but whom we do not designate as a Principal, sign the Confidentiality Agreement and Ancillary Covenants Not to Solicit agreement attached to the Franchise Agreement as Attachment D-2. We have the right, in our sole discretion, to decrease the period of time or geographic scope of the covenants or eliminate the covenants altogether for any person who signs the Principals' Undertaking and the Confidentiality Agreement and Ancillary Covenants Not to Compete or Ancillary Covenants Not to Solicit agreements.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 47–48)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, all Principals are required to sign a document called the 'Principals' Undertaking.' This document is attached to the Franchise Agreement as Attachment C.
The Principals' Undertaking legally binds the individual Principals to specific provisions outlined in the Franchise Agreement. These provisions include covenants against competition and solicitation, restrictions on using Belocal's Marks, restrictions on disclosing confidential information, transfer restrictions, and adherence to dispute resolution procedures.
Furthermore, the Principals must guarantee the financial obligations of the franchisee to Belocal or its affiliates. It is important to note that Belocal does not require an owner's spouse to sign the Principals' Undertaking or personally guarantee the Franchise Agreement. Belocal also has the right to modify or eliminate certain covenants for individuals who sign the Principals' Undertaking.