Does developing relationships to market publications that compete with Belocal constitute 'Competitive Services'?

According to Belocal's 2025 Franchise Disclosure Document, developing relationships to market publications that compete with Belocal is considered a 'Competitive Service.' Specifically, the FDD defines 'Competitive Business' as including several 'Competitive Services,' one of which is developing relationships among members of Communities or Industry Groups within or near the Territory for the purpose of marketing publications that compete with Belocal.

This definition has significant implications for a prospective Belocal franchisee. During the term of the franchise agreement, a franchisee is restricted from engaging in these Competitive Services. This restriction also extends for a period of time after the termination, expiration, or transfer of the franchise agreement, specifically within the twelve-month period prior to such termination, expiration, or transfer.

The restrictions apply not only within the franchisee's territory but also within a ten-mile radius of the territory. This broad definition of 'Competitive Services' and the associated restrictions are designed to protect Belocal's market position and goodwill. Franchisees need to be aware of these limitations and ensure their business activities do not infringe upon these restrictions, both during and after their franchise agreement.