What is the current definition of 'Qualified New Sales' for Belocal franchisees?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
" For the Publication, we require you to (1) maintain a minimum, monthly Commission for the term of your Franchise Agreement, which is currently at least $3,000 per month for each of the BELOCAL ® publications you manage; (2) include a minimum of 28 pages that meet our standards in each issue of the Publication; (3) include the number of articles each month on the topics required in the Franchise Brand Standards Manual; and (4) complete a minimum number of Qualified Sales (as defined in the Franchise Brand Standards Manual) each Quarter. We may change our minimum Commission, page number, article, Qualified Sales, and Quarter requirements in our discretion during the Term of the Franchise Agreement. Although subject to change, currently the Qualified Sale requirement is that you make three Qualified New Sales (or the sale of a new advertising contract that has a term of at least 12 months and generates Cash Received of at least $150 per month) per Quarter. If you fail to satisfy any of the requirements listed in clauses (1) through (4) above, we may provide you with a business improvement plan ("Business Improvement Plan") with strategies and metrics for returning to compliance. Additionally, you will have various deadlines for the content, review, publishing, approval, etc. of the Publication and you must meet each deadline. Failure to satisfy any of these requirements is a default under the Franchise Agreement and is grounds for termination of the Franchise Agreement.
We also require you to make a minimum number of Qualified Sales in the first sixteen weeks of your operation of the Franchised Business ("Pre-Print Sales Requirement"). Although subject to change, currently the Pre-Print Sales Requirement is that you make at least ten Qualified Sales in the first sixteen weeks of your operation of the Franchised Business. If you fail to satisfy the Pre-Print Sales Requirement, we may provide you with a Business Improvement Plan with metrics and strategies for you to improve your sale of advertising contracts. Failure to successfully complete any Business Improvement Plan is a default under the Franchise Agreement and is grounds for termination of the Franchise Agreemen
Source: Item 12 — TERRITORY (FDD pages 42–44)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a 'Qualified New Sale' is defined as either making three Qualified New Sales per quarter or securing a new advertising contract with a term of at least 12 months that generates Cash Received of at least $150 per month. This requirement is subject to change at Belocal's discretion during the term of the Franchise Agreement.
For a prospective Belocal franchisee, this means that a significant part of maintaining good standing with Belocal is dependent on meeting sales quotas. Failing to meet the minimum sales requirements, along with other operational standards like monthly commission, page numbers, and article inclusions, may lead to a Business Improvement Plan. Failure to improve could result in the termination of the Franchise Agreement.
Belocal also requires franchisees to meet a 'Pre-Print Sales Requirement' of at least ten Qualified Sales within the first sixteen weeks of operation. Failure to meet this requirement may also result in a Business Improvement Plan, and failure to successfully complete the plan is grounds for termination of the Franchise Agreement. This initial sales target is in addition to the ongoing quarterly sales requirements, placing immediate pressure on new franchisees to perform.
These sales requirements highlight the importance of sales and marketing skills for potential Belocal franchisees. The FDD indicates that these requirements are subject to change, so prospective franchisees should confirm the current requirements and understand the potential impact of any future changes on their business.