What constitutes a 'Competitive Business' for Belocal franchisees, specifically regarding publishing digital or print publications?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Competitive Business.
The term "Competitive Business" includes the following divisible and severable business lines or services (each a "Competitive Service") which the Franchisee's Franchised Business provided (a) for covenants applicable during the Term, during the Term and (b) for covenants applicable post-term, at any time within the twelve-month period prior to the termination, expiration, or transfer of this Agreement:
(i) selling digital and/or print advertising to businesses for publication in or related to digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
(ii) publishing and/or facilitating the publishing of digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
(iii) developing relationships among members of Communities within the Territory, or members of Industry Groups within the Territory and within ten miles of the Territory, for the purpose of selling or marketing digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
(iv) organizing, sponsoring, or hosting events for advertisers in the Publication or members of Communities within the Territory, or members of Industry Groups within the Territory and within ten miles of the Territory, for the purpose of selling or marketing digital or print publications, or digital or print advertising in digital or print publications, that compete with any N2 publication(s); or
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a 'Competitive Business' includes specific activities related to digital and print publications that would be considered competitive to Belocal. This definition applies both during the term of the franchise agreement and, with some modification, for a 12-month period after termination, expiration, or transfer of the agreement.
Specifically, a 'Competitive Business' includes selling digital or print advertising to businesses for publication in media that competes with Belocal publications. It also encompasses publishing or facilitating the publishing of digital or print publications that directly compete with Belocal. Furthermore, developing relationships within the franchisee's territory or within ten miles of it, for the purpose of selling or marketing competing digital or print publications, is considered a competitive activity. Organizing or hosting events for advertisers or community members to market competing publications also falls under this definition.
In essence, Belocal aims to prevent franchisees from leveraging their knowledge, relationships, and resources gained during their franchise term to directly compete with Belocal's core business of publishing and advertising sales, both during and for a limited time after the franchise agreement. This is a fairly standard practice in franchising, designed to protect the franchisor's market position and brand reputation. The restrictions are subject to reasonableness and may be reviewed by an arbitrator or court of law if deemed too broad.