Is Belocal permitted to designate itself, an affiliate, or a third party as the exclusive source for any particular item or service for Belocal franchisees?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
Required Purchases
Currently, except as described below, you have no obligation to purchase or lease from us, our affiliates, or other designated third-party suppliers any of the products, services, supplies, fixtures, equipment (including computer hardware and software and payment systems), inventory, or real estate used in establishing or operating your Franchised Business.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–35)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal has the right to designate itself, an affiliate, or a third party as the exclusive source for any particular item or service required for the operation of the franchised business. This means that Belocal franchisees may be required to purchase certain supplies, materials, equipment, or services exclusively from a source that Belocal designates. Belocal formulates its standards and specifications based on a variety of factors and can issue such standards and specifications to franchisees from time to time, including in writing in the Franchise Brand Standards Manual.
Belocal may profit from franchisee purchases and leases from approved suppliers. Belocal and/or its affiliates may receive payments, fees, commissions, or reimbursements from such suppliers in respect of franchisee purchases and leases.
Belocal estimates that a new franchisee's total initial required purchases from Belocal, its affiliates, or approved suppliers will be less than 3% of the cost of their initial investment. Belocal also estimates that a franchisee's required purchases for the operation of their Belocal franchise from Belocal, its affiliates, or approved suppliers will be 50% or more of their annual purchases or leases.