How is the commission calculated for a Belocal franchisee for each Publication they manage?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) This franchise opportunity is a commission-based program. For each Publication you manage, you will receive a Commission that equals:
- (i) For any print advertisement you sell for inclusion in the Publication, the amount equal to the total Cash Received (as defined below) for the Publication in the applicable month; minus the Royalty (set forth in the preceding chart) for the Publication for the applicable month; minus the Publication Expense (set forth in the preceding chart) for the Publication for the applicable month; plus
- (ii) For any print advertisement you sell for inclusion in a publication managed by another franchisee or by our affiliate, as applicable, (x) the amount equal to our then-current Outgoing Cross-Selling Fee (set forth in the preceding chart), divided by the total number of publications you manage, or (y) the Pre-print Commission (as defined below), divided by the total number of publications you manage; plus
- (iii) For any print advertisement another franchisee or our affiliate sells for inclusion in the Publication, the amount equal to our then-current Receiving Cross-Selling Fee (set forth in the preceding chart); plus
- (iv) The amounts paid by advertisers for the Extended Reach services and allocated to the Publication; minus the Extended Reach fee for the applicable month; plus
- (v) If in the future we institute a fee for managing a client, for any print advertisement where you "manage" (as defined in our then-current Franchise Brand Standards Manual) a client who publishes a print advertisement in a publication managed by another franchisee, you will receive our then-current Managing Cross-Selling Fee (set forth in the preceding chart), divided by the number of Publications you manage; minus
- (vi) All other applicable fees and/or deductions applicable to you or the Publication, including, but not limited to: (1) extra copy orders fee; (2) late commission deductions; (3) design revision fee and adjustment fee; (4) missed deadline fee and late revisions fee; (5) Returnable Commissions (as defined below); (6) fees for services we or our affiliates provide, including any optional services you elect to receive from us or our affiliates; (7) cross-selling fees originating from your sales into publications managed by us or our affiliates or fees for Corporate Ads; (8) lead generation fees; (9) Administrative Credit Card Fees; and/or (10) Negative Commissions (as defined in the Franchise Agreement).
"Cash Received" means all revenue actually received by us or our affiliates from advertisers, recipients of the Publication, or other parties under the terms of advertising contracts or any other form of agreement or contract related to each issue of the Publication. You will not receive a Commission payment in the month or months that a Negative Commission occurs. Commission payments will be accompanied by a Commission accounting and reconciliation report that itemizes Cash Received and the other applicable fees and expenses described in this Item 6. If the Commission report reflects that you have been paid a Commission in an amount that is more than you are due, then you must return to us the amount of overpayment ("Returnable Commission").
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the commission calculation for each publication a franchisee manages involves several factors. The franchisee receives a commission that equals the total cash received for the publication in the applicable month, minus the royalty and publication expenses for that publication.
Additionally, the commission includes considerations for cross-selling advertisements. If a franchisee sells an advertisement for inclusion in a publication managed by another franchisee or Belocal's affiliate, the selling franchisee receives an Outgoing Cross-Selling Fee. Conversely, if another franchisee or Belocal's affiliate sells an advertisement for inclusion in the franchisee's publication, the franchisee receives a Receiving Cross-Selling Fee. Belocal has the right to change the Cross-Selling Fee with no prior notice to the franchisee unless otherwise required by law.
The commission calculation also accounts for amounts paid by advertisers for Extended Reach services allocated to the publication, minus the Extended Reach fee. Furthermore, if Belocal institutes a fee for managing a client who publishes a print advertisement in another franchisee's publication, the franchisee will receive a Managing Cross-Selling Fee. However, the commission is subject to deductions for various fees, such as extra copy orders, late commission deductions, design revision fees, missed deadline fees, and returnable commissions. Belocal provides a commission accounting and reconciliation report that itemizes cash received and applicable fees and expenses.