factual

What costs, besides publication expenses, are used to determine the Belocal franchisee's commission payment?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (vi) All other applicable fees and/or deductions applicable to you or the Publication, including, but not limited to: (1) extra copy orders fee; (2) late commission deductions; (3) design revision fee and adjustment fee; (4) missed deadline fee and late revisions fee; (5) Returnable Commissions (as defined below); (6) fees for services we or our affiliates provide, including any optional services you elect to receive from us or our affiliates; (7) cross-selling fees originating from your sales into publications managed by us or our affiliates or fees for Corporate Ads; (8) lead generation fees; (9) Administrative Credit Card Fees; and/or (10) Negative Commissions (as defined in the Franchise Agreement).

"Cash Received" means all revenue actually received by us or our affiliates from advertisers, recipients of the Publication, or other parties under the terms of advertising contracts or any other form of agreement or contract related to each issue of the Publication. You will not receive a Commission payment in the month or months that a Negative Commission occurs. Commission payments will be accompanied by a Commission accounting and reconciliation report that itemizes Cash Received and the other applicable fees and expenses described in this Item 6. If the Commission report reflects that you have been paid a Commission in an amount that is more than you are due, then you must return to us the amount of overpayment ("Returnable Commission").

"Pre-print Commission" means a one-time payment equal to 10% of the total value of the contract with the advertiser for the purchase of print advertisements to be included in a publication managed by a Receiving Franchisee. If you cross-sell print advertising into a publication managed by another franchisee or our affiliate before the first issue of the Publication is published, then you may elect to receive a Pre-print Commission in lieu of the Outgoing Cross-Selling Fee. If you elect to receive a Pre-print Commission, we will pay you the Pre-print Commission within 20 days after the publication deadline of the publication in which the ad appears.

In addition to all requirements related to the printing of the first issue of the Publication and your compliance with the Franchise Agreement generally, payment of your first Commission is conditioned upon you having created a legal entity to be the franchisee and securing and producing evidence of all required insurance coverage.

The Commission you receive for the sale of print advertisements and Extended Reach services is different from and in addition to the HD Sales Commission you will receive if you elect to solicit leads for and/or facilitate client relationships with Hyport Digital. Your opportunity to solicit leads for and facilitate client relationships with Hyport Digital is conditioned on the continuance of the sales program. We may modify and discontinue this program in our sole discretion.

The HD Sales Commission is subject to change in our sole discretion, but currently will range from 6% to 12% of revenues generated by a client's purchase of goods and services from Hyport Digital. The thencurrent rates will be available in the Franchise Brand Standards Manual.

Source: Item 6 — OTHER FEES (FDD pages 14–31)

What This Means (2025 FDD)

According to Belocal's 2025 Franchise Disclosure Document, several fees and deductions, beyond publication expenses, can affect a franchisee's commission payment. These include extra copy order fees, late commission deductions, design revision fees, and adjustment fees. Additionally, missed deadline fees, late revision fees, and 'Returnable Commissions' (overpayments) can also reduce the commission. Fees for services provided by Belocal or its affiliates, cross-selling fees, fees for corporate ads, lead generation fees, administrative credit card fees, and negative commissions can also impact the final commission amount.

The commission calculation also considers revenues received by Belocal or its affiliates from advertisers or recipients of the publication. The franchisee will not receive a commission payment in months where a 'Negative Commission' occurs. Belocal provides a commission accounting and reconciliation report that details the cash received and all applicable fees and expenses.

Specifically, the design revision fee currently ranges from $30 to $80, depending on the number of annotations. An adjustment fee of $1,000 may be charged for requested changes to the publication's layout. A missed deadline fee of $1,000 may be imposed if the franchisee fails to submit content by the deadline. These fees are subject to change, with potential adjustments for inflation on flat fees, and are detailed in the Franchise Brand Standards Manual.

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.