How are amounts paid for Extended Reach services allocated to the Publication in the Belocal commission calculation?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| For Franchisee-Managed Publications: - The Selling Franchisee pays 25% of the Extended Reach Fee and receives 25% of the Cash Received for the Extended Reach advertisement. - The Receiving Franchisee pays 75% of the Extended Reach Fee and receives 75% of the Cash Received for the Extended Reach advertisement. For Bridge Publications: - The Selling Franchisee pays 35% of the Extended Reach Fee and receives 35% of the Cash Received for the Extended Reach advertisement. - We, as the manager of the Bridge Publication, will pay 65% of the Extended Reach Fee and receive 65% of the Cash Received for the Extended Reach advertisement. | charged and allocated to you and the Extended Reach fee allocated to you will be added to your Commission payment. See Note 8 regarding a cap on the total increase to this fee during the term of the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the allocation of amounts paid for Extended Reach services in the commission calculation depends on whether the publication is Franchisee-Managed or a Bridge Publication.
For Franchisee-Managed Publications, the selling franchisee pays 25% of the Extended Reach Fee and receives 25% of the cash received for the Extended Reach advertisement. The receiving franchisee pays 75% of the Extended Reach Fee and receives 75% of the cash received for the Extended Reach advertisement. This means that the commission is split between the selling and receiving franchisees, with the receiving franchisee taking on a larger portion of the fee and revenue.
For Bridge Publications, the selling franchisee pays 35% of the Extended Reach Fee and receives 35% of the cash received for the Extended Reach advertisement. Belocal, as the manager of the Bridge Publication, pays 65% of the Extended Reach Fee and receives 65% of the cash received for the Extended Reach advertisement. This indicates that Belocal takes a larger share of the fee and revenue when managing Bridge Publications compared to Franchisee-Managed Publications. The amounts charged and allocated to the franchisee and the Extended Reach fee allocated to the franchisee will be added to the commission payment.