Under the Belocal franchise agreement, what must a franchisee do after notifying the franchisor 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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee who becomes aware of a Security Breach must take specific actions. A "Security Breach" includes any unauthorized access, processing, loss, use, disclosure, alteration, destruction, transfer, or compromise of Personal Information, whether stored in paper or electronic form. It also covers any intrusion by an unauthorized third party into the franchisee's or franchisor's IT systems.
First, the franchisee must immediately notify Belocal of the Security Breach via telephone. Following this initial notification, the franchisee is obligated to cooperate with Belocal to investigate and remedy the issue. This cooperation is essential for assessing the scope and impact of the breach and implementing measures to contain and resolve it.
Furthermore, the Belocal franchisee is restricted from making any public disclosure about the unauthorized access or breach unless Belocal has provided written authorization for the notice and its form. This provision ensures that all public communications are controlled and coordinated by Belocal to protect the brand's reputation and manage the flow of information effectively. Failing to comply with these requirements could have significant repercussions for the franchisee, potentially leading to penalties or other contractual breaches.