What activities are included in the definition of 'Competitive Business' for Belocal franchisees regarding offering or selling digital marketing and advertising services?
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 digital marketing and advertising services. Specifically, it includes '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.'
This definition is relevant both during the term of the franchise agreement and, under certain conditions, for a period of twelve months after the agreement terminates, expires, or is transferred. This means that a franchisee is restricted from engaging in these competitive activities during the franchise term. These restrictions may also apply for up to a year after the franchise relationship ends.
This restriction is put in place to protect Belocal's market position and business interests by preventing franchisees from directly competing with Belocal either during the franchise agreement or immediately afterward using knowledge and resources gained as a franchisee. Franchisees should carefully consider these restrictions and how they might impact their future business opportunities after their franchise agreement with Belocal concludes.