Upon termination of a business relationship with a Belocal franchised business, what must the Covenantor do with any material containing Confidential Information?

According to Belocal's 2025 Franchise Disclosure Document, a Covenantor's responsibilities regarding confidential information extend to the termination of their business relationship with the franchised business. Specifically, the Covenantor is obligated to return and surrender any material containing confidential information to either the Franchisee or Belocal itself. This requirement is triggered either upon request or automatically upon the termination of the business relationship.

This provision ensures that Belocal's proprietary information remains protected even after a Covenantor's involvement with the franchise ends. Confidential information is broadly defined and includes, but is not limited to, trademarks, trade names, service marks, trade secrets, research, plans, products, services, customer lists, supplier information, business plans, marketing data, software, financial information, and manuals. The Franchise Brand Standards Manual is specifically identified as confidential information that cannot be reproduced without written consent from Belocal.

For a prospective Belocal franchisee, this clause highlights the importance of maintaining strict confidentiality and control over sensitive business information. It also underscores the need to ensure that all individuals associated with the franchise, such as employees or contractors (Covenantors), are fully aware of their obligations regarding confidential information, both during and after their involvement with the Belocal franchise. This helps protect Belocal's competitive advantage and the franchisee's investment.