Where are the Principals that Belocal designates set forth?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
K. Ownership; Principals' Undertaking.
- (1) If Franchisee is a corporation, partnership, limited liability company, or other legal entity, Franchisee represents and warrants that the ownership interests in Franchisee are accurately and completely described in Attachment E.
If Franchisee is a corporation, Franchisee shall maintain at all times a current list of all owners of record and all beneficial owners of any class of equity securities in Franchisee or, if Franchisee is a partnership, limited liability company, or other form of legal entity, Franchisee shall maintain at all times a current list of all owners of an interest in the partnership, limited liability company, or other entity.
Franchisee shall make its list of owners available to Franchisor upon request.
- (2) If Franchisee is a corporation, Franchisee shall maintain stop-transfer instructions against the transfer on its records of any of its equity securities and each stock certificate representing stock of the corporation shall have conspicuously endorsed upon it a statement in a form satisfactory to Franchisor that it is held subject to all restrictions imposed by this Agreement upon any transfer or assignment of such stock.
If Franchisee is a partnership or limited liability company, its written partnership or limited liability company agreement shall provide that ownership of an interest in the partnership or limited liability company is held subject to all restrictions imposed by this Agreement upon any transfer or assignment of such interests.
- (3) The Principals that Franchisor designates are set forth in Attachment E and must sign the Principal's Undertaking, Attachment C to this Agreement.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the principals that Belocal designates are set forth in Attachment E and must sign the Principal's Undertaking, which is Attachment C to the Franchise Agreement. Attachment E to the Franchise Agreement should accurately and completely describe the ownership interests in the franchisee if the franchisee is a corporation, partnership, limited liability company, or other legal entity.
If the franchisee is a corporation, they must maintain a current list of all owners of record and all beneficial owners of any class of equity securities. If the franchisee is a partnership, limited liability company, or other form of legal entity, they must maintain a current list of all owners of an interest in the partnership, limited liability company, or other entity. Belocal requires the franchisee to make its list of owners available to Belocal upon request.
Belocal also requires that if the franchisee is a corporation, they must maintain stop-transfer instructions against the transfer on its records of any of its equity securities. Each stock certificate representing stock of the corporation must have conspicuously endorsed upon it a statement in a form satisfactory to Belocal that it is held subject to all restrictions imposed by the Franchise Agreement upon any transfer or assignment of such stock. If the franchisee is a partnership or limited liability company, its written partnership or limited liability company agreement must provide that ownership of an interest in the partnership or limited liability company is held subject to all restrictions imposed by the Franchise Agreement upon any transfer or assignment of such interests.