Under the Belocal franchise agreement, what is the franchisee's responsibility regarding consumer protection laws?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) Marketing; Consumer Protection.
Franchisee shall be solely responsible for compliance with all laws pertaining to emails, including, but not limited to, the U.S.
Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 ("CAN-SPAM Act of 2003"), and to use of automatic dialing systems, SMS text messages, and artificial or prerecorded voice messages, including but not limited to the Telephone Consumer Protection Act of 1991 ("TCPA"), as amended from time to time.
Franchisee must comply with other applicable consumer protection laws and regulations.
- (5) Security Breach.
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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchisee is responsible for adhering to consumer protection laws related to marketing and data privacy. Specifically, the franchisee is solely responsible for complying with all laws pertaining to emails, including the CAN-SPAM Act of 2003, and laws related to the use of automatic dialing systems, SMS text messages, and artificial or prerecorded voice messages, including the Telephone Consumer Protection Act of 1991 (TCPA). The franchisee must also comply with other applicable consumer protection laws and regulations.
This means that a Belocal franchisee must ensure their marketing practices, especially those involving electronic communications, are fully compliant with federal regulations designed to protect consumers from unwanted solicitations and deceptive practices. This includes obtaining proper consent for marketing communications, providing opt-out mechanisms, and accurately representing the services offered. Failure to comply with these laws can result in significant fines and legal repercussions, for which the franchisee is solely responsible.
Furthermore, the franchisee has a responsibility to protect personal information. They must obtain consent for the collection, use, storage, processing, and sharing of personal information under Privacy Laws or Data Protection and Security Policies. The franchisee must retain copies of consents and share them with Belocal as required. They must also comply with Data Protection and Security Policies and Privacy Laws regarding individuals exercising their rights under these laws. In the event of a security breach involving personal information, the franchisee must immediately notify Belocal and cooperate in investigating and remedying the issue, and they cannot make any public disclosure of the breach unless authorized by Belocal, except if required by law.
These stipulations highlight the importance of franchisees staying informed about current consumer protection laws and implementing robust compliance measures. Belocal retains the right to audit the franchisee's processing of personal information, emphasizing the need for franchisees to maintain meticulous records and adhere strictly to the franchisor's policies and legal requirements.