Why were Commission payments calculated using a different formula excluded from Belocal's financial performance representation?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
We had a total of 135 BELOCAL publication franchises during the Reporting Period. We excluded the Commission payments made to publications that were not in print for the full year. We do not include information for franchisees who have been operating less than one year because we do not consider that information to be as reliable as information from franchisees who have been in operation for at least one year. We also excluded the Commission payments made to publications that were managed by 4 franchisees whose Commission payments were calculated using a different formula than the rest of our franchisees. We do not include in this disclosure document financial information about Publications managed by our affiliate. We do not include in this disclosure document financial information about our franchisees who operate the 13 Test Publications.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 55–59)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the financial performance representation excludes commission payments calculated using a different formula to maintain the reliability and consistency of the data presented. The representation includes data from 88 active franchisees and 84 BeLocal publications that were in print for a full year as of June 30, 2024, covering the period from July 1, 2024, through June 30, 2025.
Belocal excluded commission payments made to publications not in print for the entire year to ensure the data reflects a full year of operation. The company believes that data from franchisees operating for at least one year is more reliable. Additionally, the financial performance representation does not include data from publications managed by Belocal's affiliate or the 13 test publications.
Specifically, the commission payments made to publications managed by 4 franchisees were excluded because their commission payments were calculated using a different formula than the majority of franchisees. This exclusion ensures that the financial performance data accurately reflects the standard commission structure offered to most Belocal franchisees, providing prospective franchisees with a more relevant and representative view of potential earnings.