Does Belocal have the right to revoke approval of an item or supplier?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
We also have the right to revoke, in our sole discretion, the approval of any item or supplier that fails to continue to meet our standards. At our request, you must pay or reimburse us for our reasonable expenses incurred in the supplier/item approval process (whether or not approval of the supplier is granted). We do not issue our supplier approval standards and specifications to franchisees. If we revoke our approval, we will provide you 60 days' prior written notice of the revocation.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–35)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal retains the right to revoke approval of any item or supplier. Belocal can revoke approval of an item or supplier, in its sole discretion, if that item or supplier fails to continue to meet Belocal's standards.
If Belocal revokes approval, they will provide the franchisee with 60 days' prior written notice of the revocation. Belocal's standards for suppliers and items include factors such as pricing, quality, consistency, efficiency, effectiveness, control and protection of proprietary information, ability to service the entire franchise system, data security, credit worthiness, and solvency.
This clause is important for prospective franchisees as it highlights Belocal's control over the supply chain and the standards expected of suppliers. While franchisees can propose new suppliers or items, Belocal is not obligated to approve them, even if they meet the criteria. Furthermore, Belocal can change the number of approved suppliers at any time and may designate themselves, an affiliate, or a third party as the exclusive source for any particular item or service. This could impact a franchisee's costs and operational flexibility.