factual

What is the condition for a Belocal franchisee to be eligible to receive the Outgoing Cross-Selling Fee when selling advertising for another franchisee's publication?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

Further, if Franchisee sells print advertising for a publication that is the responsibility of another franchisee, then Franchisee shall be eligible to receive Franchisor's then-current Outgoing Cross-Selling Fee for such sale(s), as set forth in the Franchise Brand Standards Manual, provided Franchisee complies with Franchisor's then-current policies, procedures, and guidelines related to cross-selling. Franchisor shall have the right to terminate Franchisee's right to cross-sell or this Agreement if Franchisee fails to comply with Franchisor's policies, procedures, and guidelines related to cross-selling.

Source: Item 22 — CONTRACTS (FDD page 71)

What This Means (2025 FDD)

According to Belocal's 2025 Franchise Disclosure Document, a franchisee is eligible to receive the Outgoing Cross-Selling Fee when selling print advertising for a publication managed by another franchisee if the franchisee complies with Belocal's policies, procedures, and guidelines related to cross-selling. These policies and guidelines are detailed in the Franchise Brand Standards Manual.

The Outgoing Cross-Selling Fee is a percentage 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. Currently, the selling franchisee receives 25% of the monthly cash received. However, Belocal retains the right to change this percentage, potentially to 10% of the monthly cash received.

Belocal also has the right to terminate a franchisee's right to cross-sell or terminate the Franchise Agreement if the franchisee fails to comply with the cross-selling policies, procedures, and guidelines. This highlights the importance of adhering to Belocal's standards to maintain the ability to earn cross-selling fees and avoid potential penalties.

Prospective franchisees should carefully review the Franchise Brand Standards Manual to fully understand the requirements for cross-selling and ensure they can comply with all applicable policies and procedures. Understanding these policies is crucial for maximizing revenue opportunities through cross-selling while remaining in good standing with Belocal.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.