What business lines or services are considered a 'Competitive Business' for a Belocal franchisee during their business relationship with the Franchisor?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
(B) The term "Competitive Business" includes the following divisible and severable business lines or services (each, a "Competitive Service") which the Franchisee's Franchised Business of which Covenantor is a part provided (i) for covenants applicable during the term of the Covenantor's business relationship with Franchisee or the Franchised Business, at any time during that relationship and (ii) for covenants applicable after the term of the Covenantor's relationship with Franchisee or the Franchised Business, at any time within the twelve-month period prior to the termination of the Covenantor's business relationship with the Franchised Business or the termination, expiration, or transfer of the Franchisee's Franchise Agreement:
(i) selling digital and/or print advertising to businesses for publication in or related to digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
(ii) publishing and/or facilitating the publishing of digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
(iii) developing relationships among members of Communities within the Territory, or members of Industry Groups within the Territory and within ten miles of the Territory, for the purpose of selling or marketing digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
(iv) organizing, sponsoring, or hosting events for advertisers in the Publication or members of Communities within the Territory, or members of Industry Groups within the Territory and within ten miles of the Territory, for the purpose of selling or marketing digital or print publications, or digital or print advertising in digital or print publications, that compete with any N2 publication(s); or
(v) offering or selling digital marketing and advertising services which are offered or sold by Franchisor or its affiliates or are or were offered and sold by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a "Competitive Business" includes specific business lines or services that would be considered competitive to Belocal. These are applicable during the franchisee's business relationship with Belocal. These competitive services are defined as divisible and severable business lines.
Specifically, these include selling digital or print advertising to businesses for publication in formats that compete with Belocal publications. It also includes publishing or facilitating the publishing of digital or print publications that are in competition with Belocal. Developing relationships within the franchisee's territory to market publications that compete with Belocal is also considered a competitive business activity.
Additionally, organizing or hosting events for advertisers or community members within or near the territory to market competing publications is included. Finally, offering or selling digital marketing and advertising services that Belocal or its affiliates offer, or that the franchisee has previously offered, is considered a competitive business.