What agreement(s) could cause a violation if a franchisee enters into the Belocal agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (2) Franchisee does not operate its Franchised Business in accordance with all of Franchisor's standards and procedures, including without limitation, those set forth in Sections 5.B. and 5.E. of this Agreement and those set forth in Franchisor's Franchise Brand Standards Manual;
- (3) Franchisee fails to maintain the Publication for the Territory that contains substantive, current, community-specific, or industry-specific information in accordance with Franchisor's standards and procedures;
- (4) Franchisee fails to submit content on or before the applicable deadline or fails to submit sufficient content;
- (5) Franchisee or any Principal fails to return any Returnable Commissions to Franchisor within 15 days after receiving notice from Franchisor that such Returnable Commissions are due;
- (6) Franchisee fails to pay when due any fee, expense, charge, or other amount due and owing to any supplier or creditor of Franchisee;
- (7) Franchisee fails to pay its Independent Staff in accordance with applicable federal, state, and local labor and/or employment and payday laws;
- (8) Franchisee or any Principal (i) fails to interact with a lead or facilitate a client relationship with Hyport Digital in a professional manner or (ii) through act or omission, violates a policy or requirement of the Franchise Brand Standards Manual regarding the Hyport Digital leads, clients, goods, services, and trademarks;
- (9) Franchisee or any Principal fails to interact in a professional manner with any other franchisee, current or prospective advertiser or client, or any member of any Community or Industry Group;
- (10) Franchisor receives from any advertiser, Community, or Industry Group repeated complaints about the Franchised Business, Franchisee, or any Principal; or
- (11) Franchisee fails to comply with any other provision of this Agreement.
- E. Mutual Termination Right. Franchisor and Franchisee each have the right to terminate this Agreement for any reason or no reason by providing the other party with written notice of termination on or before the earlier to occur of (1) nine months following the Effective Date or (2) the date on which the first issue of the Publication is issued. In the event of termination of this Agreement pursuant to this Section 10.E., neither party shall incur any liability or have any obligation to pay the other party any amounts hereunder, except for amounts due and owing as of the date of the mutual termination. In Franchisor's sole discretion, Franchisor may condition Franchisee's termination under this Section 10.E.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, several actions and failures to act can lead to a violation of the franchise agreement. These include not adhering to Belocal's standards and procedures as outlined in the Franchise Brand Standards Manual or Sections 5.B. and 5.E. of the agreement. A franchisee could also be in violation if they fail to maintain a publication with substantive, current, community-specific, or industry-specific information, or if they miss deadlines for content submission or provide insufficient content.
Financial obligations also play a crucial role; failing to return commissions within 15 days of notice, not paying suppliers or creditors on time, or not paying independent staff according to labor laws are all potential violations. Furthermore, inappropriate interactions with leads, clients, other franchisees, or members of the community or industry groups, as well as repeated complaints from advertisers or community members, can lead to breaches of the agreement.
Other violations include misuse of Belocal's copyrighted materials, unauthorized use of confidential information, failure to comply with confidentiality and non-competition covenants, or any unauthorized use of the System or Marks. Essentially, any failure to comply with any provision of the franchise agreement can be grounds for violation, highlighting the importance of understanding and adhering to all terms and conditions outlined in the document.