Does Belocal have the right to own all online presences related to the Belocal franchised business?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
You cannot establish, maintain, operate, or participate in any Online Presence relating to the Franchised Business (other than our Online Presence) without our prior written approval, which we can revoke any time an Online Presence fails to continue to meet our standards. We have the right to own all Online Presences related to the Franchised Business and the Marks. We have the right to require you to provide us with control over or access to any such Online Presences at any time, and to prohibit your use or access to such Online Presences upon your default under or any termination of the Franchise Agreement. You must transfer to us any Online Presence (including accounts, credentials, and login information) at any time we require during the term or following the termination of the Franchise Agreement.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 48–49)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal retains significant control over the franchisee's online presence. Belocal has the right to own all online presences related to the franchised business and its trademarks. This includes the ability to require franchisees to provide control over or access to any such online presences at any time. Furthermore, Belocal can prohibit a franchisee's use of or access to these online presences if the franchisee defaults under or upon termination of the Franchise Agreement.
Belocal requires franchisees to transfer any online presence, including accounts, credentials, and login information, at any time during the term or following the termination of the Franchise Agreement. Franchisees cannot establish, maintain, operate, or participate in any online presence relating to the franchised business (other than Belocal's online presence) without prior written approval. This approval can be revoked if the online presence fails to meet Belocal's standards.
These stipulations give Belocal considerable authority over how the Belocal brand is represented online. For a prospective franchisee, this means they must adhere to Belocal's standards for any online presence and be prepared to relinquish control or ownership of these assets to Belocal under certain conditions. This is a fairly common practice in franchising, as franchisors aim to maintain brand consistency and control quality across all franchise locations. However, franchisees should carefully consider the implications of these terms, especially regarding the investment of time and resources into building an online presence that Belocal could ultimately control.