What activities are considered 'Competitive Services' for Belocal franchisees after the term of their business relationship?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Competitive Business.
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;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a 'Competitive Service' includes specific business lines or services that the franchisee's franchised business provided within the 12-month period before the termination, expiration, or transfer of the Franchise Agreement. These restrictions apply to covenants applicable after the term of the franchisee's relationship with Belocal.
Specifically, these competitive services include:
- 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.
- Publishing and/or facilitating the publishing of digital or print publications that compete with any N2 publication(s), including BELOCAL publications.
- 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.
These restrictions are designed to protect Belocal's market position and prevent former franchisees from directly competing using the knowledge and resources gained during their franchise term.