Is developing relationships within communities or industry groups to sell competing publications considered a 'Competitive Service' under the Belocal franchise agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. The term "Competitive Business" includes the following divisible and severable business lines or services (each a "Competitive Service") which the Franchisee's Franchised Business provided (a) for covenants applicable during the Term, during the Term and (b) for covenants applicable post-term, at any time within the twelve-month period prior to the termination, expiration, or transfer of this Agreement:
- (i) selling digital and/or print advertising to businesses for publication in or related to digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
- (ii) publishing and/or facilitating the publishing of digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, developing relationships within communities or industry groups to sell competing publications is considered a 'Competitive Service.' Specifically, the franchise agreement defines 'Competitive Business' to include several 'Competitive Services.'
One of these 'Competitive Services' is 'developing relationships among members of Communities within the Territory, or members of Industry Groups within the Territory and within ten miles of the Territory, for the purpose of selling or marketing digital or print publications that compete with any N2 publication(s), including BELOCAL publications.' This clause applies both during the term of the franchise agreement and, for a period of twelve months after termination, expiration, or transfer of the agreement.
This means that during the franchise term and for one year afterward, a Belocal franchisee is restricted from actively building connections within their territory's communities or industry groups to promote publications that directly rival Belocal's offerings. This restriction is in place to protect Belocal's market position and goodwill by preventing franchisees from leveraging their established networks to benefit competing businesses. A franchisee found in violation could face legal repercussions as outlined in the franchise agreement.