Under the Belocal franchise agreement, what is the consequence if a Belocal franchisee's principal discloses the Confidential Information?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (2) Ensure that all counsel, accountants, and other representatives of Franchisee and/or Principals who are given access any Confidential Information on behalf of Franchisee or any Principal comply with the confidentiality provisions of this Agreement. Franchisee and each Principal are, jointly and severally, fully responsible for any breach of this Agreement by any person to whom access to the Confidential Information is given by Franchisee, any Principals, or any of their representatives;
- (3) Not make any copies of the Confidential Information for any purpose that is not directly related to the Franchised Business;
- (4) Not upload or download, or attempt to upload or download, any Confidential Information that is not directly related to the Franchised Business; and
- (5) Upon termination, expiration, or transfer of this Agreement, promptly return to Franchisor all Confidential Information and all copies thereof.
For clarity, any attempt by Franchisee (using any method) to upload, download, or copy into any format any Confidential Information that is not directly related to the Franchised Business, including without limitation, client and advertiser information, shall constitute grounds for immediate termination of this Agreement.
B. In-term Noncompetition. Franchisee and Owners represent that they are not currently working with or for any Person engaged in any Competitive Business (as defined in Section 7.G. below). Franchisee and each Owner specifically acknowledge that they will receive valuable Confidential Information beyond their present skills and experience and that such Confidential Information provides a competitive advantage.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a Belocal franchisee's principal discloses Confidential Information, both the franchisee and the principal are held jointly and severally responsible for the breach of the agreement. This means that Belocal can pursue either the franchisee, the principal, or both for damages resulting from the disclosure.
Furthermore, any attempt by the franchisee to upload, download, or copy Confidential Information not directly related to the franchised business can result in immediate termination of the franchise agreement. This includes client and advertiser information, highlighting the sensitivity Belocal places on protecting its proprietary data.
Belocal emphasizes that the Confidential Information is solely owned by them and that its use or duplication in any other business constitutes unfair competition. The FDD states that any disclosure or unauthorized use of Confidential Information will cause irreparable loss and harm to Belocal. This underscores the importance of maintaining confidentiality and the potential legal and financial repercussions of failing to do so under the Belocal franchise agreement.