How is the amount calculated for Belocal franchisees for print advertisements another franchisee or the Franchisor's affiliate sells for inclusion in the franchisee's Publication?

According to Belocal's 2025 Franchise Disclosure Document, when another franchisee or Belocal's affiliate sells a print advertisement for inclusion in a Belocal franchisee's publication, the franchisee receives an amount equal to Belocal's then-current Receiving Cross-Selling Fee.

Belocal outlines the current and potential future calculations for cross-selling fees. Currently, the franchisee whose publication includes the advertisement (the Receiving Franchisee) receives 75% of the monthly cash received for that advertisement, less a royalty of 15% of the cash received and the publication expenses. The franchisee who sold the advertisement (the Selling Franchisee) receives an Outgoing Cross-Selling Fee equal to 25% of the monthly cash received for the advertisement.

Belocal retains the right to change these cross-selling fee calculations. Under a potential future model, the Receiving Franchisee would receive 60% of the monthly cash received, less publication expenses. A Managing Franchisee (as defined in Belocal's Franchise Brand Standards Manual) would receive 30% of the monthly cash received less the 15% royalty. The Selling Franchisee would receive 10% of the monthly cash received.