How is the commission calculated for Belocal franchisees for print advertisements they sell for inclusion in a publication managed by another franchisee or Belocal's affiliate?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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").
"Pre-print Commission" means a one-time payment equal to 10% of the total value of the contract with the advertiser for the purchase of print advertisements to be included in a publication managed by a Receiving Franchisee. If you cross-sell print advertising into a publication managed by another franchisee or our affiliate before the first issue of the Publication is published, then you may elect to receive a Pre-print Commission in lieu of the Outgoing Cross-Selling Fee. If you elect to receive a Pre-print Commission, we will pay you the Pre-print Commission within 20 days after the publication deadline of the publication in which the ad appears.
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 franchisees who sell print advertisements for inclusion in another franchisee's or Belocal's affiliate's publication involves a cross-selling fee structure. As the 'Selling Franchisee', the franchisee will receive either an Outgoing Cross-Selling Fee or a Pre-print Commission. The Outgoing Cross-Selling Fee is currently 25% of the monthly Cash Received for each print advertisement sold. However, Belocal retains the right to change this to 10% of the monthly Cash Received. Alternatively, the franchisee can elect to receive a Pre-print Commission, which is a one-time payment equal to 10% of the total contract value with the advertiser.
Belocal also defines the roles in this cross-selling arrangement. The 'Receiving Franchisee' manages the publication where the ad is placed, and the 'Managing Franchisee' actively manages the relationship with the advertiser. The Receiving Franchisee currently receives 75% of the monthly Cash Received for the advertisement, less a royalty of 15% of the Cash Received and the Publication Expenses. If Belocal changes the fee structure, the Receiving Franchisee would receive 60% of the monthly Cash Received, less Publication Expenses, and the Managing Franchisee would receive 30% of the monthly Cash Received, less the 15% royalty.
It is important for prospective Belocal franchisees to understand that Belocal can change the Cross-Selling Fee with no prior notice, unless otherwise required by law. Franchisees must also comply with Belocal's policies, procedures, and guidelines related to cross-selling to be eligible for any Cross-Selling Fee. Failure to comply with these policies could result in the termination of the franchisee's right to cross-sell or even the Franchise Agreement itself. This commission structure is designed to incentivize collaboration and cross-promotion within the Belocal franchise network, but it also carries the risk of fluctuating income based on Belocal's discretion.