How is the commission calculated for a Belocal franchisee when they sell print advertisements for inclusion in a publication managed by another franchisee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) For purposes of our cross-selling program, the "Selling Franchisee" is the franchisee (or affiliate of ours) who sells print advertisements to be included in a publication managed by another franchisee (or affiliate of ours); the "Receiving Franchisee" is the franchisee (or affiliate of ours) who manages the publication within which the print advertisements will be published; and the "Managing Franchisee" is the franchisee who actively manages the relationship with the advertiser client. Currently, the Cross-Selling Fees are calculated as follows:
- (i) The Selling Franchisee will receive an Outgoing Cross-Selling Fee equal to 25% of the monthly Cash Received for each print advertisement sold by the Selling Franchisee that will be included in the publication managed by the Receiving Franchisee.
- (ii) The Receiving Franchisee will receive a Receiving Cross-Selling Fee equal to 75% of the monthly Cash Received for that print advertisement, less the Royalty of 15% of the Cash Received and the Publication Expenses.
We have the right to change the Cross-Selling Fee to be calculated as follows:
- (i) The Selling Franchisee would receive an Outgoing Cross-Selling Fee equal to 10% of the monthly Cash Received for each print advertisement sold by the Selling Franchisee for inclusion in the publication managed by the Receiving Franchisee.
- (ii) The Managing Franchisee would receive a Managing Cross-Selling Fee equal to 30% of the monthly Cash Received for each print advertisement, less the Royalty of 15% of the Cash Received.
- (iii) The Receiving Franchisee would receive a Receiving Cross-Selling Fee sequal to 60% of the monthly Cash Received for that print advertisement, less the Publication Expenses.
You must comply with our then-current policies, procedures and guidelines related to cross-selling to be eligible to receive any Cross-Selling Fee. We have the right to change the Cross-Selling Fee with no prior notice to you unless otherwise required by law. We have the right to terminate your right to cross-sell or
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, when a franchisee sells print advertisements for inclusion in a publication managed by another Belocal franchisee, the commission is determined through a cross-selling program. The franchisee who sells the advertisement (the Selling Franchisee) currently receives an Outgoing Cross-Selling Fee equal to 25% of the monthly Cash Received for each advertisement. The franchisee who manages the publication (the Receiving Franchisee) receives a Receiving Cross-Selling Fee equal to 75% of the monthly Cash Received, less a Royalty of 15% of the Cash Received and the Publication Expenses.
Belocal retains the right to change the Cross-Selling Fee structure. Under a potential future model, the Selling Franchisee would receive 10% of the monthly Cash Received. A Managing Franchisee (the franchisee who actively manages the relationship with the advertiser client) would receive 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.
Belocal emphasizes that franchisees must comply with all cross-selling policies, procedures, and guidelines to be eligible for any Cross-Selling Fee. Belocal also retains the right to change the Cross-Selling Fee structure without prior notice, unless otherwise required by law, and can terminate a franchisee's right to cross-sell for non-compliance with these policies. Franchisees should stay informed of the current policies to ensure they receive the correct commission and maintain their cross-selling privileges.
Alternatively, the franchisee can elect to receive a Pre-print Commission. The Pre-print Commission is a one-time payment equal to 10% of the total value of the contract with the advertiser. This election must be made before the first issue of the publication is published. If the franchisee elects to receive the Pre-print Commission, they will be paid within 20 days after the publication deadline.