What business lines or services are considered a 'Competitive Business' for a Belocal franchisee after the termination of their 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;
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 a franchisee's business provided within the twelve-month period before the termination, expiration, or transfer of the Franchise Agreement. These are termed "Competitive Services."
Specifically, these services include selling digital or print advertising to businesses for publications that compete with Belocal publications. It also includes publishing or facilitating the publishing of digital or print publications that compete with Belocal. Developing relationships among community or industry group members within or near the franchisee's territory for the purpose of selling or marketing competing publications is also considered a competitive service. Organizing or hosting events for advertisers or community members to market competing publications or advertising is also included. Finally, offering or selling digital marketing and advertising services that Belocal or its affiliates offer, or that the franchisee previously offered, are considered competitive services.
These restrictions apply for a period of two years after the termination, expiration, or transfer of the agreement. The franchisee agrees that these covenants contain reasonable limitations regarding time, geographical area, and scope of activity and do not impose a greater restraint than necessary to protect Belocal's goodwill or other legitimate business interests.