Does Belocal provide material benefits to franchisees based upon their use of designated or approved suppliers?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
We are not obligated to negotiate with any suppliers for our franchisees' benefit. If we choose to do so, we cannot guarantee the outcome of any negotiations including any price terms. We do not provide material benefits to franchisees based upon their use of designated or approved suppliers. We or our affiliates may receive payments from any supplier on account of its dealings with you and other franchisees. There are currently no purchasing or distribution cooperatives for the system.
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 does not provide material benefits to franchisees based upon their use of designated or approved suppliers. However, Belocal, or its affiliates, may receive payments from suppliers based on the franchisee's dealings with them.
Belocal requires franchisees to comply with all standards and specifications relating to the purchase of supplies, materials, equipment, and other products and services used in the franchised business. If Belocal has approved suppliers, franchisees must use those suppliers. Belocal may change the number of approved suppliers at any time and may designate itself, 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 in respect of these purchases and leases.
If a franchisee wishes to use a service, vendor, supplier, or type or brand of item that is not currently approved by Belocal, the franchisee must notify Belocal in writing and submit specifications, photographs, samples, and/or other information requested. Belocal may also inspect the supplier's facilities, software, security systems, or procedures. Belocal will determine whether the item(s) or supplier meet its standards and will notify the franchisee whether they are authorized to use such item(s) or purchase from such supplier, but Belocal is not required to approve any particular item(s) or supplier. Belocal is also not required to permit franchisees to contract with alternative suppliers, even if they meet Belocal's criteria.