Who is responsible for the consequences if the technology is not properly operated, maintained, and upgraded for a Belocal franchise?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Despite the fact that you must buy, use, and maintain the Technology according to our standards and specifications, you will have sole and complete responsibility for: (1) the acquisition, operation, maintenance, and upgrading of the Technology; (2) the manner in which your Technology interfaces with our and any third party's technology; and (3) any and all consequences if the Technology is not properly operated, maintained, and upgraded.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–42)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchisee bears the responsibility for any consequences resulting from the improper operation, maintenance, or upgrading of required technology. Despite Belocal mandating that franchisees acquire, use, and maintain technology according to their standards, the franchisee is ultimately accountable.
This means that Belocal franchisees are solely responsible for the acquisition, operation, maintenance, and upgrading of the technology used in their business. They are also responsible for how their technology interfaces with Belocal's and any third party's technology. This includes any issues that may arise if the technology is not properly managed or kept up to date.
This allocation of responsibility places a significant burden on the franchisee. It is crucial for prospective franchisees to fully understand the technology requirements, associated costs, and potential risks involved in maintaining and upgrading the technology. They should also consider the need for technical expertise or support to ensure the technology operates effectively and in compliance with Belocal's standards. This is a departure from some franchise systems where the franchisor provides more direct technology support.