Under what conditions is a Belocal franchisee prohibited from making a public disclosure of a Security Breach?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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 cooperate with Franchisor in any audit or inspection that Franchisor may conduct from time to time relating to Franchisee's processing of Personal Information.
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 is responsible for obtaining any required consent to the collection, use, storage, processing, and sharing of Personal Information from all parties from which it is required to obtain consent under the Privacy Laws or Data Protection and Security Policies.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee is restricted from publicly disclosing a security breach unless specific conditions are met. The franchisee cannot make any public disclosure of unauthorized access or a security breach unless Belocal has authorized the provision of notice and approved the form of such notice in writing. This requirement ensures that Belocal maintains control over the messaging and management of any security incidents that could affect the brand's reputation or customer trust.
This provision is designed to ensure a coordinated and consistent response to security breaches. By requiring franchisees to obtain written authorization from Belocal before making any public statements, Belocal can ensure that the information released is accurate, timely, and aligned with the company's overall crisis management strategy. This approach helps to minimize potential damage to the brand's reputation and maintain customer confidence.
Furthermore, the franchisee is obligated to immediately notify Belocal via telephone upon becoming aware of any actual or suspected security breach and to cooperate with Belocal to investigate and remedy the issue. This immediate notification requirement allows Belocal to take swift action to contain the breach, assess the extent of the damage, and implement necessary security measures to prevent future incidents. The franchisee's cooperation in the investigation and remediation process is crucial for effectively addressing the security breach and mitigating its potential impact.
In addition to these restrictions, the franchisee is responsible for obtaining any required consent for the collection, use, storage, processing, and sharing of personal information from all relevant parties, as mandated by privacy laws and data protection policies. This underscores the importance of data privacy and security within the Belocal franchise system and highlights the franchisee's role in safeguarding personal information and complying with applicable regulations.