What activities are included in the definition of 'Competitive Business' for Belocal franchisees regarding publishing and/or facilitating the publishing of digital or print publications?
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;
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 activities related to publishing that would compete with Belocal's N2 publications. These activities are considered competitive both during the term of the franchise agreement and, under certain conditions, for twelve months after termination, expiration, or transfer of the agreement.
Specifically, the definition encompasses publishing or facilitating the publishing of digital or print publications that compete with any N2 publication, including Belocal publications. This means a franchisee cannot directly engage in creating or assisting in the creation of competing publications.
This restriction is in place to protect Belocal's market position and the integrity of its brand. The FDD also states that these covenants are considered reasonable in terms of time, geographical area, and scope, and are not intended to be more restrictive than necessary to protect Belocal's goodwill and business interests.