Can Belocal change the minimum commission, page count, events, and topic-specific articles required of franchisees?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Each month, and for each Publication that Franchisee manages, Franchisee must (i) maintain a minimum, monthly Commission in the amount prescribed in the Franchise Brand Standards Manual; (ii) include a minimum number of pages that meet Franchisor's standard within each issue of the Publication, as prescribed in the Franchise Brand Standards Manual; and (iii) include a minimum number of articles on the topics as prescribed in the Franchise Brand Standards Manual.
Franchisor may change the amount of the minimum Commission, minimum number of pages, minimum number of events, and minimum number of topic-specific articles at any time during the Term of this Agreement, in its discretion.
If Franchisee fails to satisfy any of the foregoing requirements, Franchisor may provide Franchisee with a Business Improvement Plan with metrics and strategies for Franchisee to improve its commissions, page count, or neighborhood-specific article count, as applicable.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal has the discretion to modify certain operational requirements for franchisees. Specifically, Belocal can change the minimum monthly commission, the minimum number of pages in each publication issue, the minimum number of events, and the minimum number of topic-specific articles that franchisees must include. These standards are initially detailed in the Franchise Brand Standards Manual.
This flexibility allows Belocal to adapt its requirements based on market conditions, industry trends, or overall business strategy. For a franchisee, this means that the financial and operational benchmarks they need to meet can change over time. It's crucial for prospective franchisees to understand that these changes are at Belocal's discretion, providing limited control for the franchisee.
If a Belocal franchisee fails to meet these requirements, Belocal may provide a Business Improvement Plan that outlines specific metrics and strategies for improvement. Failure to successfully complete this plan can result in a default under the Franchise Agreement, potentially leading to termination. Therefore, franchisees must stay informed about any changes to these requirements and proactively adjust their business practices to remain compliant and avoid penalties.