Can Belocal designate advertisers as Strategic Partners at any time?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
We, our affiliates, or our other franchisees may, from time to time in our sole discretion, solicit, seek to establish, or establish one or more national or regional accounts with prospective advertisers and advertisers that may be located in, or have offices, branches, or some other presence, in your Territory ("Strategic Partners"). You have no right to solicit or sell advertising to a Strategic Partner, but we may, in our discretion, establish a policy allowing you to do so, and we may change such policy in our discretion at any time. If you attempt to sell advertising to a Strategic Partner, you must strictly comply with all of our requirements relating to such relationships, including honoring any pricing arrangement agreed to between us and such Strategic Partner. We reserve the right to designate, at any time, any advertiser as a Strategic Partner, including but not limited to those to whom you have already sold advertising.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal retains the right to designate any advertiser as a Strategic Partner at any time. This includes advertisers to whom a franchisee has already sold advertising.
This policy has significant implications for Belocal franchisees. While franchisees typically have the right to solicit and sell advertising within their territory, Belocal can designate certain advertisers as "Strategic Partners" and remove them from the franchisee's pool of potential clients. Franchisees have no right to solicit or sell to Strategic Partners unless Belocal establishes a policy allowing them to do so, which Belocal can change at any time. If a franchisee does sell to a Strategic Partner, they must adhere to any pricing arrangements Belocal has established with that partner.
This clause gives Belocal considerable control over key advertising accounts within a franchisee's territory. The franchisee bears the risk of losing clients they have cultivated if Belocal decides to designate those clients as Strategic Partners. Prospective franchisees should carefully consider this provision and how it might impact their revenue potential and business relationships within their territory. It would be prudent to discuss with Belocal the criteria and process for designating Strategic Partners to better understand the potential impact on their business.