What is the definition of a 'Business Improvement Plan' 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 Business Improvement Plan is a tool that Belocal may provide to a franchisee who fails to meet certain performance requirements. These requirements include maintaining a minimum monthly commission of $3,000 per Belocal publication, including at least 28 pages that meet Belocal's standards in each publication issue, including the required number of articles on specific topics each month, and completing a minimum number of Qualified Sales each quarter. Currently, the Qualified Sale requirement is 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.
Belocal may also provide a Business Improvement Plan if a franchisee fails to meet the Pre-Print Sales Requirement, which is making at least ten Qualified Sales in the first sixteen weeks of operation. The Business Improvement Plan includes strategies and metrics designed to help the franchisee return to compliance with Belocal's standards or to improve their sale of advertising contracts.
It's important to note that failure to successfully complete a Business Improvement Plan is considered a default under the Franchise Agreement and can be grounds for termination of the agreement. This highlights the importance of meeting Belocal's performance standards and the potential consequences of failing to do so.