Is Belocal subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal, its predecessors, individuals identified in Item 2, or any affiliates offering franchises under Belocal's trademark are not subject to any currently effective order from a national securities association or exchange as defined by the Securities and Exchange Act of 1934. This means that Belocal has not been suspended or expelled from any national securities association or exchange.
This lack of disciplinary action suggests a degree of regulatory compliance and financial responsibility on the part of Belocal. Prospective franchisees can view this as a positive indicator, suggesting that Belocal has not run afoul of securities regulations that might impact its ability to operate or offer franchises.
However, it is important for potential franchisees to conduct their own due diligence. While the FDD indicates no current issues, franchisees should independently verify this information and consider consulting with legal and financial advisors to assess the overall risk and compliance profile of investing in a Belocal franchise.