Is developing relationships among members of Industry Groups within ten miles of the Territory considered a 'Competitive Business' for Belocal franchisees?

According to Belocal's 2025 Franchise Disclosure Document, developing relationships among members of Industry Groups within the Territory and within ten miles of the Territory is considered a 'Competitive Business' if it's done for the purpose of selling or marketing digital or print publications that compete with any N2 publication(s), including BELOCAL publications. This falls under the definition of a 'Competitive Service'.

This means that during the term of the franchise agreement, a Belocal franchisee is restricted from actively building connections within these groups to promote competing publications. This restriction applies both within the franchisee's designated territory and extends to a ten-mile radius around it. The aim is to prevent franchisees from leveraging their Belocal network and resources to benefit rival businesses.

This non-compete clause is designed to protect Belocal's market share and the integrity of its network. Franchisees should be aware that engaging in such activities, even if seemingly indirect, could be construed as a breach of the franchise agreement. It is important for prospective franchisees to fully understand the scope and limitations of these competitive restrictions to avoid potential conflicts.

Belocal franchisees should seek clarification from the franchisor regarding specific activities that might be considered competitive, especially if they have existing relationships within industry groups near their territory. Understanding these boundaries is crucial for maintaining a compliant and successful franchise operation.