What does Belocal define as the 'Restricted Territory' in the franchise agreement?

According to Belocal's 2025 Franchise Disclosure Document, the "Restricted Territory" is defined with multiple conditions. The primary definition includes the territories of, and a ten-mile radius around the perimeter of the territory of, any publication business owned by Belocal, its affiliates, or its franchisees, including the franchisee's own territory.

However, the agreement anticipates that this primary definition might be deemed too broad. Therefore, it provides alternative, narrower definitions that would apply if a court or arbitrator finds the initial definition to be overly restrictive. These alternative definitions, in successively narrower terms, include: the territories of any publication business owned by Belocal, its affiliates, or its franchisees (including the franchisee's own territory); the territories of any of Belocal's franchisees (including the franchisee's own territory); a ten-mile radius around the perimeter of the franchisee's territory and the franchisee's territory itself; and finally, the franchisee's territory alone.

This tiered definition approach provides Belocal with flexibility in enforcing non-compete provisions, while also acknowledging the potential for judicial review of the restrictions' reasonableness. A prospective franchisee should understand that the actual scope of the restricted territory could vary depending on legal interpretations and challenges.