What should a prospective Belocal franchisee do to investigate the franchise opportunity?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Use of Franchise Brokers. The franchisor may use the services of franchise brokers to assist it in selling franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. Do not rely only on the information provided by a franchise broker about a franchise. Do your own investigation by contacting the franchisor's current and former franchisees to ask them about their experience with the franchisor.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if the franchisor uses franchise brokers to assist in selling franchises, prospective franchisees should not rely solely on the information provided by the broker. A franchise broker represents Belocal and receives a fee for referring prospects or selling the franchise.
Instead, the FDD advises prospective Belocal franchisees to conduct their own investigation. This includes contacting both current and former Belocal franchisees to inquire about their experiences with the franchisor. This direct communication can provide valuable insights into the day-to-day operations, challenges, and overall satisfaction levels within the Belocal franchise system.
This recommendation is particularly important because a franchise broker's primary allegiance is to the franchisor, Belocal. Therefore, their information may be biased or incomplete. By independently verifying information with existing and past franchisees, potential investors can gain a more balanced and realistic understanding of the franchise opportunity and its potential risks and rewards.