factual

When did Belocal apply for registration of its FDD for Real Producers Publications franchises in Washington?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

In the Matter of Neighborhood Networks Publishing, Inc., State of Washington Department of Financial Institutions Securities Division, Order No. S-18-2456-18-CO01. On or about November 20, 2017, we applied for registration of our FDD for the offer and sale of our Real Producers Publications franchises. After cooperating with the state of Washington's requests for information relating to our affiliate's, Neighborhood Networks Publishing, Inc. (now known as The N2 Company), business activities, on November 5, 2018, the state of Washington determined that Neighborhood Networks Publishing, Inc. had offered and sold franchises in violation of the Washington Franchise Investment Protection Act before the date of our application. The state of Washington alleged that Neighborhood Networks Publishing, Inc. failed to provide prospective purchasers with disclosure documents and made financial performance representations in violation of Washington law. Neither we nor Neighborhood Networks Publishing, Inc. agrees with the state of Washington's findings, but in an effort to resolve the matter, in April 2019, Neighborhood Networks Publishing, Inc. entered into a Consent Order with the state of Washington. Under the Consent Order, Neighborhood Networks Publishing, Inc. agreed (1) to comply with the Washington Franchise Investment Protection Act, in all respects, (2) to cease and desist from violations of the Washington Franchise Investment Protection Act, and (3) to reimburse the state of Washington for its investigative costs in the amount of $4,000.

Source: Item 3 — LITIGATION (FDD page 13)

What This Means (2025 FDD)

According to Belocal's 2025 Franchise Disclosure Document, the company applied for registration of its FDD for Real Producers Publications franchises in Washington on or about November 20, 2017. However, the State of Washington found that Belocal's affiliate, Neighborhood Networks Publishing, Inc., had previously offered and sold franchises in violation of the Washington Franchise Investment Protection Act before Belocal's application date.

Specifically, Washington alleged that Neighborhood Networks Publishing, Inc. failed to provide prospective purchasers with necessary disclosure documents and made prohibited financial performance representations. While Belocal and Neighborhood Networks Publishing, Inc. disagreed with the state's findings, Neighborhood Networks Publishing, Inc. entered into a Consent Order with Washington in April 2019 to resolve the matter.

Under the Consent Order, Neighborhood Networks Publishing, Inc. agreed to comply with the Washington Franchise Investment Protection Act, cease and desist from violations, and reimburse the state $4,000 for investigative costs. This administrative action is disclosed in Item 3 of Belocal's FDD, which covers litigation and legal matters relevant to prospective franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.