Who is responsible for breaches of the Belocal franchise agreement's confidentiality provisions by individuals given access to Confidential Information?

According to Belocal's 2025 Franchise Disclosure Document, the franchisee and each principal are jointly and severally responsible for any breach of the franchise agreement regarding confidentiality. This responsibility extends to any person to whom access to confidential information is given by the franchisee, its principals, or their representatives.

This means that if a franchisee's employee, accountant, or any other representative violates the confidentiality provisions, both the franchisee and their principals can be held liable. This liability is not limited to direct employees but extends to anyone who gains access to Belocal's confidential information through the franchisee's business operations.

For a prospective Belocal franchisee, this highlights the critical importance of carefully managing access to confidential information and ensuring that all individuals with access are fully aware of and compliant with the confidentiality provisions of the franchise agreement. Franchisees should implement robust training and monitoring procedures to mitigate the risk of breaches and potential liability.