What activities are considered 'Competitive Services' for Belocal franchisees during the term of their business relationship?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Competitive Business" includes the following divisible and severable business lines or services (each a "Competitive Service") which the Franchisee's Franchised Business provided (a) for covenants applicable during the Term, during the Term and (b) for covenants applicable post-term, at any time within the twelve-month period prior to the termination, expiration, or transfer of this Agreement:
(i) selling digital and/or print advertising to businesses for publication in or related to digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
(ii) publishing and/or facilitating the publishing of digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
(iii) developing relationships among members of Communities within the Territory, or members of Industry Groups within the Territory and within ten miles of the Territory, for the purpose of selling or marketing digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
(iv) organizing, sponsoring, or hosting events for advertisers in the Publication or members of Communities within the Territory, or members of Industry Groups within the Territory and within ten miles of the Territory, for the purpose of selling or marketing digital or print publications, or digital or print advertising in digital or print publications, that compete with any N2 publication(s); or
(v) offering or selling digital marketing and advertising services which are offered or sold by Franchisor or its affiliates or are or were offered and sold by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a "Competitive Business" includes specific business lines or services, each defined as a "Competitive Service." These restrictions apply during the franchisee's term with Belocal.
The prohibited "Competitive Services" include selling digital or print advertising for publications that compete with N2 publications, including Belocal publications. This extends to publishing or facilitating the publishing of competing digital or print publications.
Additionally, franchisees are restricted from developing relationships among community or industry group members within or near their territory to sell or market competing publications. Organizing or hosting events for advertisers or community members to market competing publications or advertising is also prohibited. Lastly, offering or selling digital marketing and advertising services that Belocal or its affiliates offer, or that the franchisee has previously offered, is considered a "Competitive Service".
These covenants ensure that during the term of the agreement, Belocal franchisees focus solely on promoting Belocal and N2 publications, preventing them from directly competing with the franchise system. This protects Belocal's market position and confidential information.