Can Belocal require franchisees to pay additional fees due to changes in technology?
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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal franchisees may be required to pay additional or increased fees due to changes in technology. Belocal states that changes to technology are dynamic and unpredictable.
Belocal has the right to establish, in writing, reasonable new standards for the implementation of technology in the system. The franchisee will abide by any such reasonable new standards established by Belocal at the franchisee's sole cost and expense. This means that franchisees are responsible for covering the costs associated with adopting new technological standards.
As a result of changes to technology, Belocal franchisees may be required to pay additional or increased fees to Belocal, Belocal's affiliates, or third-party suppliers. Franchisees may also be required to purchase new or additional technology. This could include software licenses, new hardware, or other technology-related expenses deemed necessary by Belocal. Franchisees should be prepared for potential costs associated with keeping up with technological advancements within the Belocal franchise system.