What activities are included in the definition of 'Competitive Business' for Belocal franchisees regarding organizing, sponsoring, or hosting events for advertisers or members of Communities or Industry Groups?

According to Belocal's 2025 Franchise Disclosure Document, a 'Competitive Business' includes specific activities related to events. If a Belocal franchisee organizes, sponsors, or hosts events for advertisers in the Publication, or for members of Communities or Industry Groups within the Territory or 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), this is considered a 'Competitive Business'.

This definition is relevant both during the term of the franchise agreement and, under certain conditions, for a period after the agreement terminates, expires, or is transferred. The restriction applies to activities aimed at selling or marketing competing publications or advertising. The geographic scope includes the franchisee's territory and an area extending ten miles beyond its borders.

This non-compete clause is designed to protect Belocal's market position and prevent franchisees from leveraging their access to Belocal's resources and relationships to benefit competing ventures. Franchisees need to be aware of these restrictions when considering any outside business activities, especially those involving advertising, publishing, or event management within their territory or nearby areas. It is important to note that the definition of 'Competitive Business' also includes other activities beyond event-related services, such as selling competing advertising or publishing competing publications.

Belocal franchisees should carefully review the full definition of 'Competitive Business' in the Franchise Agreement to fully understand the scope of these restrictions and how they might impact future business opportunities. Franchisees should seek clarification from Belocal if they are unsure whether a particular activity would be considered competitive.