Is Belocal required to defend a franchisee against claims arising from the misuse of any Mark or Copyrighted Materials?

According to Belocal's 2025 Franchise Disclosure Document, Belocal is not required to defend a franchisee against claims arising from the franchisee's use or misuse of any Mark, Copyrighted Materials, or other Confidential Information. The franchisee is also not entitled to indemnification or reimbursement from Belocal for any losses or damages resulting from such use or misuse.

However, the franchisee is obligated to notify Belocal immediately of any apparent infringement or challenge to the franchisee's use of any Mark or Copyrighted Material, or any claim by any person of any rights in any Mark or Copyrighted Materials. The franchisee must only communicate with Belocal, its affiliates, their counsel, and the franchisee's counsel regarding any infringement, challenge, or claim. Belocal has complete discretion to take any action it deems appropriate regarding any infringement, challenge, or claim to any Mark or Copyrighted Materials, including the right to control any settlement, litigation, or other proceeding.

The franchisee is required to execute all documents and provide assistance necessary to protect Belocal's interests in the Marks or Copyrighted Materials. Belocal reserves the right to add, change, revise, discontinue, or substitute different Marks and Copyrighted Materials at its sole discretion, and the franchisee must comply with these changes and bear all associated expenses.