Can the amount, due date, and calculation of the HD Sales Commission for Belocal franchisees change?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyport Digital Sales Commission.
If Franchisee elects to solicit leads for and facilitate client relationships with Hyport Digital, Franchisee shall be entitled to receive the then-current "HD Sales Commission." The amount, due date, calculation, and other details of the HD Sales Commission are subject to change in Franchisor's sole discretion.
Franchisor may consider the following factors, among others, in establishing the HD Sales Commission: (1) the type of good or service Franchisee sells to the client, (2) the other goods and services the client purchases, (3) whether or not Franchisee referred the client to Hyport Digital, (4) the scope of the involvement of the Hyport Digital sales team, and (5) Franchisee's role in facilitating the relationship between the client and Hyport Digital.
The HD Sales Commission is due, as applicable, (i) only to the first franchisee that introduces a new prospective lead to Hyport Digital who has not already been a client of Hyport Digital during the previous 12-month period and (ii) only if the client unconditionally and completely pays for goods and services purchased from Hyport Digital.
The HD Sales Commission shall be calculated on the gross invoice price of the goods and services less all taxes, credits, discounts, rebates, and/or allowances (if any).
The HD Sales Commission shall be paid in the month following the client's unconditional and complete payment for purchased goods and services.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the amount, due date, and calculation of the HD Sales Commission are subject to change at Belocal's sole discretion. This means that Belocal has the authority to modify these aspects of the commission structure for franchisees. The factors that Belocal may consider when establishing the HD Sales Commission include the type of good or service the franchisee sells, other goods and services the client purchases, whether the franchisee referred the client, the scope of involvement of the Hyport Digital sales team, and the franchisee's role in facilitating the relationship between the client and Hyport Digital.
Furthermore, the HD Sales Commission is only due to the first franchisee that introduces a new prospective lead to Hyport Digital who has not been a client in the previous 12 months. It is also contingent on the client unconditionally and completely paying for the goods and services purchased from Hyport Digital. The commission is calculated on the gross invoice price of the goods and services, less all taxes, credits, discounts, rebates, and/or allowances. The HD Sales Commission is paid in the month following the client's unconditional and complete payment for the purchased goods and services.
This flexibility allows Belocal to adjust the commission structure based on market conditions, the performance of different products or services, and the contributions of individual franchisees. For a prospective franchisee, this means that the potential income from HD Sales Commissions could fluctuate over time. It is important to stay informed about any changes to the commission policy and to understand the factors that influence the commission calculation. Franchisees should regularly consult the Franchise Brand Standards Manual, where the then-current HD Sales Commission details are outlined, to remain compliant and maximize their earnings potential.