What are the conditions that must be met before Belocal pays a referral fee to a franchisee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
We may pay a referral fee of $10,000 to the first of our franchisees that introduces a new prospective franchisee to us who is not associated with us, The N2 Company, or any of our affiliated businesses and is identified to us as referred by the prospective franchisee on their initial application if: (a) we approve the new prospect, (b) we and the prospect sign a Franchise Agreement within 6 months after the referral is made, (c) the prospect pays us the full initial franchise fee applicable to their franchise, (d) the prospect timely begins operation of its business, (e) the publication managed by the prospect goes to print, and (f) the prospect earns at least one qualified commission (currently a qualified commission is at least $3,000 (excluding fees charged by the franchisee to the client for ad management services) within 12 months of the date the prospect begins operations of its business. If we pay the referral fee, we will pay the fee after all of the above conditions are met. The prospect turned franchisee must also be in good standing under its franchise agreement at the time. You must be in full compliance with all Franchise Agreements between you and us (or our affiliates) in order to receive a referral fee. This referral fee is available only if the new prospect's Franchised Business manages a new publication or acquires the rights to manage a Bridge Publication; it is not available for transfers of existing Franchised Businesses. This referral program is subject to all state and local laws and regulations. We reserve the right to terminate, cancel, or modify such referral program at any time. Franchisees should refer to the Referral Program Policy document for additional rules and information. No more than one referral fee will be paid to franchisees living in or operating a Franchised Business within the state of Washington, and no franchisee, regardless of location,
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee may receive a $10,000 referral fee if they introduce a new prospective franchisee who is not already associated with Belocal, The N2 Company, or any of their affiliated businesses. The prospective franchisee must also identify the referring franchisee on their initial application.
Several conditions must be met for the referring Belocal franchisee to receive the $10,000 referral fee. First, Belocal must approve the new prospect. Second, Belocal and the prospect must sign a Franchise Agreement within 6 months of the referral. Third, the prospect must pay the full initial franchise fee. Fourth, the prospect must begin operating their Belocal business in a timely manner. Fifth, the publication managed by the new prospect must go to print. Finally, the new prospect must earn at least one qualified commission of at least $3,000 (excluding fees charged by the franchisee to the client for ad management services) within 12 months of starting their business. The new franchisee must also be in good standing under their franchise agreement at the time the referral fee is paid.
Furthermore, the referring franchisee must be in full compliance with all Franchise Agreements with Belocal or its affiliates to receive the referral fee. This referral fee is only available if the new prospect's business manages a new publication or acquires the rights to manage a Bridge Publication and is not available for transfers of existing Franchised Businesses. Belocal retains the right to terminate, cancel, or modify the referral program at any time. The referral program is subject to all state and local laws and regulations. No more than one referral fee will be paid to franchisees living in or operating a Franchised Business within the state of Washington, and no franchisee, regardless of location, will receive more than one referral fee for referrals made to franchisees living in or operating a Franchised Business in Washington. Prospective franchisees should refer to the Referral Program Policy document for additional rules and information.