What are the obligations of a Belocal franchisee regarding pre-opening purchases/leases (Item 9) in light of the franchisor's assistance with initial training (Item 11)?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Obligation | Section in Agreement | Disclosure Document |
|---|---|---|
| Item | ||
| a. Site selection and acquisition/lease | Not applicable | Items 1, 7, and 11 |
| b. Pre-opening purchases/leases | Not applicable | Items 7, 8, and 11 |
| c. |
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, and it references Item 11 regarding pre-opening purchases/leases. Specifically, franchisees are responsible for pre-opening purchases and leases, as detailed in Items 7, 8, and 11 of the FDD.
Belocal provides initial training to the franchisee before the Franchised Business opens, as stated in Item 11. However, the franchisee is responsible for securing their own office space, which can be their home. Belocal does not assist with site selection, negotiation, or approval of the office location. The franchisee is responsible for constructing, remodeling, or decorating the office to comply with local ordinances and building codes.
While Belocal offers initial training and access to the Franchise Brand Standards Manual, it does not provide or deliver any of the items needed for operations. The franchisee must manage pre-opening purchases/leases independently, using the list of approved or designated suppliers provided by Belocal. This means the franchisee needs to budget time and capital for these activities, even while undergoing initial training.