Is Belocal responsible for any data lost due to a malfunction or crash of the required technology?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
We own all client lists and all other information you collect during the term of your Franchise Agreement. You must not sell, transfer, or use this data for any purpose other than operating your Franchised Business. We recommend that you back up your data locally, which may require you to purchase a "back-up" subscription service. We are not responsible under any circumstances for any malfunction or "crash" of the Technology we require, recommend, provide, or approve, including for any Franchised Business data lost as a result of any such malfunction or "crash."
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, Belocal is not responsible for any data loss resulting from technology malfunctions or crashes. The FDD clearly states that Belocal is not responsible under any circumstances for any malfunction or "crash" of the Technology they require, recommend, provide, or approve. This includes any loss of franchised business data.
Belocal recommends that franchisees back up their data locally, which may require purchasing a back-up subscription service. Despite Belocal requiring franchisees to buy, use, and maintain the technology according to their standards, the franchisee has sole responsibility for the acquisition, operation, maintenance, and upgrading of the technology. The franchisee is also responsible for how their technology interfaces with Belocal's and any third party's technology.
This means that Belocal franchisees bear the full risk of data loss and must take proactive measures to protect their information. It is crucial for prospective franchisees to understand this allocation of responsibility and budget for appropriate data backup and recovery solutions. This is a common practice in franchising, where franchisees often bear the responsibility for managing and maintaining their own technology infrastructure.