Is there a limit on how frequently Belocal can require franchisees to acquire new computer hardware or software?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
You must acquire and use any other computer (including tablets) hardware, cloud systems, artificial intelligence tools, and software for the operation of the Franchised Business that we require, including any enhancements, additions, substitutions, modifications, upgrades, and specific models or versions ("Technology"). We may also require you to license from us, or others we designate, any computer software
we develop or acquire for use in connection with the Franchised Business and pay any associated fees. There is no contractual limitation on the frequency or cost of these obligations. If we provide you with any Technology or require you to use specific cloud systems or software, we reserve the right to maintain complete access, at all times, to such Technology or your accounts with cloud systems and software, and you must provide us all passwords and other login credentials associated with the foregoing at our request. Otherwise, we do not have independent access to your personal computer or the information generated or stored on your computer and do not have a contractual right to access it. The types of data generated and stored on the required Technology include advertiser information, advertising content, Publication production management information, personnel information, operations information, financial information, and sales order and commission management information.
Neither we, our affiliates, nor any third parties are required to provide ongoing maintenance, repairs, upgrades, or updates to your Technology, and there are currently no optional or required maintenance/ upgrade contracts for the Technology.
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, there is no contractual limitation on how frequently or costly Belocal can mandate technology upgrades. As a Belocal franchisee, you must acquire and use any computer hardware, cloud systems, artificial intelligence tools, and software that Belocal requires for operating the franchise. This includes any enhancements, additions, substitutions, modifications, upgrades, and specific models or versions, which Belocal terms "Technology".
Belocal also has the right to require franchisees to license software from them or designated third parties and to charge associated fees. Belocal maintains complete access to any required technology, cloud systems, or software, and franchisees must provide all necessary passwords and login credentials upon request. The types of data generated and stored on the required technology include advertiser information, advertising content, Publication production management information, personnel information, operations information, financial information, and sales order and commission management information.
While franchisees are responsible for the acquisition, operation, maintenance, and upgrading of the technology, Belocal, its affiliates, and third parties are not obligated to provide ongoing maintenance, repairs, upgrades, or updates. Furthermore, Belocal is not responsible for any malfunctions or data loss resulting from the technology. This lack of a contractual limitation on upgrade frequency, combined with the franchisee's responsibility for costs and maintenance, could pose a significant financial risk if Belocal frequently mandates new technology or software.