What constitutes a 'Competitive Business' for Belocal franchisees, specifically regarding selling digital and/or print advertising during the term of the agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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
(v) offering or selling digital marketing and advertising services which are offered or sold by Franchisor or its affiliates or are or were offered and sold by Franchisee.
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 business lines or services that would be considered competitive to Belocal. These competitive services apply during the term of the franchise agreement.
Specifically, selling digital or print advertising to businesses for publication in digital or print publications that compete with any N2 publication, including Belocal publications, is considered a competitive business. This also includes publishing or facilitating the publishing of digital or print publications that compete with N2 publications, including Belocal publications.
Additionally, developing relationships among members of Communities or Industry Groups within the Territory, or within ten miles of the Territory, for the purpose of selling or marketing digital or print publications that compete with N2 publications is considered a competitive business. Organizing, sponsoring, or hosting events for advertisers or members of Communities or Industry Groups within the Territory, or within ten miles of the Territory, for the purpose of selling or marketing competing digital or print publications or advertising is also included. Finally, offering or selling digital marketing and advertising services which are offered or sold by Belocal or its affiliates or were offered and sold by the franchisee is considered a competitive business.