Can Belocal require franchisees to license software from them or designated others?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Franchisee must acquire and use any computer (including tablets), hardware, cloud systems, artificial intelligence tools, and software for the operation of the Franchised Business that Franchisor requires, including any enhancements, additions, substitutions, modifications, upgrades, and specific models or versions ("Technology").
Franchisor may also require Franchisee to license from Franchisor, or others Franchisor designates, any computer software Franchisor develops or acquires for use in connection with the Franchised Business and pay any fees associated with any such software licenses.
Franchisee agrees that changes to Technology are dynamic and unpredictable.
To provide for inevitable but unpredictable changes to technological needs and opportunities, Franchisee agrees that Franchisor shall have the right to establish, in writing, reasonable new standards for the implementation of Technology in the System; and Franchisee agrees that Franchisee will abide by any such reasonable new standards established by Franchisor, at Franchisee's sole cost and expense.
Franchisee may be required to pay additional or increased fees to Franchisor, Franchisor's affiliates, or third-party suppliers, as a result of changes to Technology; and Franchisee may be required to purchase new or additional Technology.
- (3) If Franchisor provides Franchisee with any Technology or Software Programs, or requires specific cloud systems and software, Franchisor reserves the right to maintain complete access, at all times, to such provided Technology or Software Programs, or required cloud systems and software without Franchisee's permission, and Franchisee must provide Franchisor all passwords and other login credentials associated with the foregoing at Franchisor's request.
Otherwise, Franchisor does not have independent access to Franchisee's personal computer.
- (4) Despite the fact that Franchisee agrees to buy, use, and maintain the Technology and Software Programs according to Franchisor's standards and specifications, Franchisee shall have sole and complete responsibility for: (1) the acquisition, operation, maintenance, and upgrading of the Technology and Software Programs; (2) the manner in which the Technology and Software Programs interface with Franchisor's and any third party's computer system; and (3) any and all consequences if the Technology or Software Programs are not properly operated, maintained, and upgraded.
Franchisee acknowledges and agrees that Franchisor shall have no responsibility under any circumstances for any malfunction or "crash" of any Technology or Software Programs provided by, required by, or approved by Franchisor, including, but not limited to, for any data lost as a result of any such malfunction or "crash."
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal franchisees must acquire and use any computer, hardware, cloud systems, artificial intelligence tools, and software required by Belocal for operating the franchised business. This includes any enhancements, additions, substitutions, modifications, upgrades, and specific models or versions.
Belocal has the right to mandate that franchisees license computer software that Belocal develops or acquires, either directly from Belocal or from other designated entities. Franchisees are also responsible for paying any associated fees for these software licenses. Belocal retains the right to establish new technology standards and franchisees must comply with these standards at their own expense. These changes may also result in additional or increased fees payable to Belocal, its affiliates, or third-party suppliers, and may require franchisees to purchase new or additional technology.
If Belocal provides any technology or software programs, or requires specific cloud systems and software, Belocal reserves the right to maintain complete access to such technology or software programs at all times, without the franchisee's permission. Franchisees must provide Belocal with all passwords and other login credentials associated with these systems upon request. However, Belocal does not have independent access to the franchisee's personal computer otherwise.
Despite franchisees being required to buy, use, and maintain technology and software programs according to Belocal's standards, the franchisee is solely responsible for the acquisition, operation, maintenance, and upgrading of the technology and software programs. They are also responsible for how the technology and software programs interface with Belocal's and any third party's computer system, and any consequences if the technology or software programs are not properly operated, maintained, and upgraded. Belocal assumes no responsibility for any malfunction or "crash" of any technology or software programs provided, required, or approved by Belocal, including any data lost as a result.