How is the commission calculated for a Belocal franchisee when another franchisee sells print advertisements for inclusion in their Publication?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| The maximum Missed Deadline Fee that we may charge is $1,500 per occurrence. | |||
| Late Revisions Fee (2) (7) | Currently, $1,000 | On demand | Your Commission payment is determined, in part, by whether or not you timely review, make, or accept revisions to the Publication during certain stages of the publication process. See Note 2. If you fail to timely review, make, or accept revisions to the Publication during certain stages of the publication process, we may charge you a Late Revisions Fee of $1,000. The Late Revisions Fee may be updated from time to time in the Franchise Brand Standards Manual. See Note 7 regarding our ability to change certain flat fees, including the Late Revisions Fee. The maximum Late Revisions Fee that we may charge is $1,500 per occurrence. |
| Cross-Selling Fee (2) (3) | Currently, if someone other than you sells a print advertisement for inclusion in the Publication, that Selling Franchisee will receive an Outgoing Cross Selling Fee equal to 25% of the Cash Received for that advertisement and you (as the Receiving Franchisee) will receive a Receiving Cross-Selling Fee of 75% of the Cash Received, less the Royalty of 15% of the Cash Received and the Publication Expenses. We may in the future change the Cross-Selling Fees so that the Selling Franchisee receives an Outgoing Cross-Selling Fee of 10% of the Cash Received; the Managing | Monthly | Your Commission payment is determined, in part, by the amount of Outgoing Cross Selling Fees you receive for selling print advertisements in publications managed by other franchisees and by the amount other franchisees receive for selling print advertisements in the Publication. See Notes 2 and 3. |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the commission structure for cross-selling print advertisements involves a Selling Franchisee (the one who sells the ad) and a Receiving Franchisee (the one who manages the publication). Currently, the Selling Franchisee receives an Outgoing Cross-Selling Fee equal to 25% of the monthly Cash Received for each print advertisement they sell that is included in the Receiving Franchisee's publication. The Receiving Franchisee gets a Receiving Cross-Selling Fee equal to 75% of the monthly Cash Received for that ad, but this is reduced by the Royalty of 15% of the Cash Received and the Publication Expenses.
Belocal retains the right to modify this commission structure. The potential future structure would pay the Selling Franchisee an Outgoing Cross-Selling Fee of 10% of the monthly Cash Received. A Managing Franchisee (the one actively managing the client relationship) would receive a Managing Cross-Selling Fee of 30% of the monthly Cash Received, less the 15% Royalty. The Receiving Franchisee would then receive 60% of the monthly Cash Received, less Publication Expenses.
It is important to note that Belocal can change the Cross-Selling Fee without prior notice, unless legally required. To be eligible for any Cross-Selling Fee, franchisees must comply with Belocal's policies and procedures related to cross-selling. Failure to comply can result in termination of the right to cross-sell or even the Franchise Agreement itself. This commission structure is a key element of the Belocal franchise, impacting the revenue potential for franchisees who actively participate in cross-selling and those who manage publications that include cross-sold advertisements.