How is the Cross-Selling Fee calculated for a Belocal franchise when someone other than the franchisee sells a print advertisement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) For purposes of our cross-selling program, the "Selling Franchisee" is the franchisee (or affiliate of ours) who sells print advertisements to be included in a publication managed by another franchisee (or affiliate of ours); the "Receiving Franchisee" is the franchisee (or affiliate of ours) who manages the publication within which the print advertisements will be published; and the "Managing Franchisee" is the franchisee who actively manages the relationship with the advertiser client. Currently, the Cross-Selling Fees are calculated as follows:
- (i) The Selling Franchisee will receive an Outgoing Cross-Selling Fee equal to 25% 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.
- (ii) The Receiving Franchisee will receive a Receiving Cross-Selling Fee equal to 75% of the monthly Cash Received for that print advertisement, less the Royalty of 15% of the Cash Received and the Publication Expenses.
We have the right to change the Cross-Selling Fee to be calculated as follows:
- (i) The Selling Franchisee would receive an Outgoing Cross-Selling Fee equal to 10% of the monthly Cash Received for each print advertisement sold by the Selling Franchisee for inclusion in the publication managed by the Receiving Franchisee.
- (ii) The Managing Franchisee would receive a Managing Cross-Selling Fee equal to 30% of the monthly Cash Received for each print advertisement, less the Royalty of 15% of the Cash Received.
- (iii) The Receiving Franchisee would receive a Receiving Cross-Selling Fee sequal to 60% of the monthly Cash Received for that print advertisement, less the Publication Expenses.
You must comply with our then-current policies, procedures and guidelines related to cross-selling to be eligible to receive any Cross-Selling Fee. We have the right to change the Cross-Selling Fee with no prior notice to you unless otherwise required by law. We have the right to terminate your right to cross-sell or
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the cross-selling program involves three parties: the Selling Franchisee, who sells the ad; the Receiving Franchisee, who manages the publication; and the Managing Franchisee, who manages the client relationship. Currently, if a Belocal franchisee sells a print advertisement to be included in a publication managed by another franchisee, the Selling Franchisee receives an Outgoing Cross-Selling Fee equal to 25% of the monthly Cash Received for that advertisement. The Receiving Franchisee gets a Receiving Cross-Selling Fee equal to 75% of the monthly Cash Received, less a Royalty of 15% of the Cash Received and the Publication Expenses.
Belocal retains the right to change how the Cross-Selling Fee is calculated. Under a potential future calculation, the Selling Franchisee would receive 10% of the monthly Cash Received. The Managing Franchisee would receive 30% of the monthly Cash Received, less the 15% Royalty. The Receiving Franchisee would then receive 60% of the monthly Cash Received, less Publication Expenses.
To be eligible for any Cross-Selling Fee, franchisees must comply with Belocal's policies, procedures, and guidelines related to cross-selling. Belocal can change the Cross-Selling Fee without prior notice, unless legally required. Non-compliance with cross-selling policies can lead to termination of the franchisee's right to cross-sell or even termination of the Franchise Agreement. This highlights the importance of adhering to Belocal's established protocols to maintain cross-selling privileges and avoid potential penalties.