What are the obligations of a Belocal franchisee regarding pre-opening purchases/leases (Item 9) in light of the restrictions on sources of products and services (Item 8) and the franchisor's assistance with initial training (Item 11)?
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 |
You must comply with all of our standards and specifications relating to the purchase of all supplies, materials, equipment (including computer hardware and software), and other products and services used in the Franchised Business. We formulate our standards and specifications based on a variety of factors and can issue such standards and specifications to you from time to time, including in writing in the Franchise Brand Standards Manual. If we have approved suppliers for any supplies, products, and/or services used or offered by your Franchised Business, you must use those suppliers. We may change the number of approved suppliers at any time and may designate ourselves, an affiliate, or a third party as the exclusive source for any particular item or service. We may profit from your purchases and leases from approved suppliers, and we and/or our affiliates may receive payments, fees, commissions, or reimbursements from such suppliers in respect of your purchases and leases.
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- Provide initial training to you. (Franchise Agreement, Sections 5.D. and 6.E.)
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- Provide you access to our Franchise Brand Standards Manual. (Franchise Agreement, Section 6.A.)
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- Provide you ongoing advice and written materials regarding the operations and management of your Franchised Business. (Franchise Agreement, Section 6.C.)
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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.)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees have obligations related to pre-opening purchases and leases, as detailed in Item 9, and these are connected to restrictions on sources of products and services (Item 8) and the franchisor's assistance with initial training (Item 11). Item 9 indicates that pre-opening purchases/leases are discussed in Items 7, 8, and 11 of the FDD.
Belocal requires franchisees to comply with all standards and specifications relating to the purchase of supplies, materials, equipment (including computer hardware and software), and other products and services used in the Franchised Business. These standards are based on various factors and can be issued from time to time, including in writing in the Franchise Brand Standards Manual. If Belocal has approved suppliers for any supplies, products, and/or services, franchisees must use those suppliers. Belocal may change the number of approved suppliers at any time and may designate themselves, an affiliate, or a third party as the exclusive source for any particular item or service. Belocal may profit from franchisee purchases and leases from approved suppliers, and Belocal and/or its affiliates may receive payments, fees, commissions, or reimbursements from such suppliers.
Belocal provides initial training to franchisees before they open their Franchised Business. They also provide access to their Franchise Brand Standards Manual and ongoing advice and written materials regarding the operations and management of the Franchised Business. Belocal will give franchisees a list of any approved or designated suppliers and other written specifications for required or recommended goods and services. However, other than providing the software described in Item 11, Belocal does not provide or deliver any of the items needed for operations.
Prospective Belocal franchisees should carefully review Items 7, 8, and 11 of the FDD, as well as the Franchise Brand Standards Manual, to fully understand the specific requirements for pre-opening purchases and leases, the approved suppliers they must use, and the standards and specifications they must meet. Understanding these obligations is crucial for budgeting and planning the launch of their Belocal franchise.