What specific actions must a Belocal franchisee take if they become aware of a Security Breach?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, if Franchisee becomes aware of any actual or suspected unauthorized access, processing, loss, use, disclosure, alteration, destruction, transfer, or other compromise or acquisition of or access to any Personal Information, whether such information is stored in paper or electronic form, or information that might reasonably expose Franchisor to any harm or prejudice of any type or actual or suspected intrusion by an unauthorized third party into Franchisee's or Franchisor's computers, networks, servers, IT resources, or paper files ("Security Breach"), Franchisee shall immediately notify the Franchisor via telephone of such matter and shall thereafter cooperate with Franchisor to investigate and remedy such matter.
Except to the extent required by applicable law, no public disclosure of any instance of such unauthorized access or breach shall be made by Franchisee unless Franchisor has authorized the provision of notice and the form of such notice in writing.
Franchisee shall reimburse Franchisor for all reasonable Notification and Remediation Related Costs (as defined below) incurred by Franchisor arising out of or in connection with any such Security Breach that is directly or indirectly caused by Franchisee, its Principals, and its Independent Staff. "Notification and Remediation Related Costs" shall mean Franchisor's internal and external costs associated with addressing and responding to any Security Breach, including but not limited to: (i) preparation and mailing or other transmission of legally required notifications to affected individuals, regulators, and attorneys general; (ii) preparation and mailing or other transmission of such other communications to customers, agents, or others as Franchisor deems reasonably appropriate; (iii) establishment of a call center or other communications procedures in response to such Security Breach (e.g., customer service FAQs, talking points, and training); (iv) engagement of information technology consultants, public relations, and other similar crisis management services; (v) payment of legal and accounting fees and expenses associated with Franchisor's investigation of and response to such Security Breach; and (vi) payment of costs for commercially reasonable credit reporting services that are associated with legally required notifications or are advisable under the circumstances.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee has specific obligations upon discovering a security breach. If a Belocal franchisee becomes aware of any actual or suspected unauthorized access, processing, loss, use, disclosure, alteration, destruction, transfer, or other compromise or acquisition of or access to any Personal Information, whether stored in paper or electronic form, or any suspected intrusion into computer systems, networks, servers, IT resources, or paper files that might reasonably expose Belocal to harm, the franchisee must immediately notify Belocal via telephone.
Following the initial notification, the franchisee is required to cooperate with Belocal in the investigation and remediation of the security breach. This cooperation is essential for Belocal to effectively address the breach and mitigate any potential damage.
Furthermore, the Belocal franchisee is restricted from making any public disclosure of the unauthorized access or breach unless Belocal has provided written authorization for the notice and its form. This measure ensures that Belocal maintains control over communications related to security breaches, protecting the brand's reputation and ensuring consistent messaging. The franchisee is also responsible for reimbursing Belocal for all reasonable Notification and Remediation Related Costs incurred by Belocal arising out of or in connection with any such Security Breach that is directly or indirectly caused by Franchisee, its Principals, and its Independent Staff. Notification and Remediation Related Costs include costs associated with addressing and responding to any Security Breach, including but not limited to: (i) preparation and mailing or other transmission of legally required notifications to affected individuals, regulators, and attorneys general; (ii) preparation and mailing or other transmission of such other communications to customers, agents, or others as Belocal deems reasonably appropriate; (iii) establishment of a call center or other communications procedures in response to such Security Breach (e.g., customer service FAQs, talking points, and training); (iv) engagement of information technology consultants, public relations, and other similar crisis management services; (v) payment of legal and accounting fees and expenses associated with Belocal's investigation of and response to such Security Breach; and (vi) payment of costs for commercially reasonable credit reporting services that are associated with legally required notifications or are advisable under the circumstances.
These requirements highlight the importance Belocal places on data security and the protection of personal information. Franchisees must be vigilant in safeguarding data and responsive in the event of a security breach to minimize potential harm and financial repercussions.