For Belocal's cross-selling program, how is the Receiving Cross-Selling Fee calculated for the Receiving Franchisee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Receiving Cross-Selling Fee is initially calculated as 75% of the monthly Cash Received for a print advertisement, less the Royalty of 15% of the Cash Received and the Publication Expenses. The Receiving Franchisee manages the publication where the advertisement is placed. Cash Received is defined as all revenue actually received by Belocal or its affiliates from advertisers or other parties related to each publication.
Belocal retains the right to change this fee structure. Under the potential new calculation, the Receiving Franchisee would receive 60% of the monthly Cash Received for the print advertisement, less the Publication Expenses. The Royalty, which is 15% of the Cash Received, would be allocated to the Managing Franchisee in this scenario.
It is important to note that Belocal can change the Cross-Selling Fee with no prior notice, unless otherwise required by law. To be eligible for any Cross-Selling Fee, franchisees must comply with Belocal's policies, procedures, and guidelines related to cross-selling. Failure to comply can result in termination of the right to cross-sell or even termination of the Franchise Agreement.