What are Belocal's digital advertising policies regarding selling digital advertising services outside of a franchisee's territory?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
You have the right to sell and offer to sell print advertising and digital advertising services to clients located both inside and outside of your Territory, but only in accordance with our then-current digital advertising policies, crossselling policies and Franchise Brand Standards Manual. We also have the right to allow other franchisees or affiliates to offer and sell advertising in all forms to clients located in your Territory.
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The Franchise Agreement provides you with the right to sell print advertising for print publications. You will also have the right to sell digital advertising services and to organize local events. Currently the only digital advertising services you are authorized to sell are the Extended Reach services. You may not market or sell any services outside your Territory, except print advertisements for inclusion in the Publication or the publications managed by others and digital advertising services, subject to our cross-selling policies and digital advertising policies, without our prior written consent. You have no right to sell goods or any other services through any other channel of distribution – whether inside or outside of your Territory. You may not organize events held more than 25 miles from your Territory without obtaining our prior written consent. We have the right to restrict you from offering or selling advertisements of any kind to any client or prospective client at any time.
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Our affiliate, The N2 Company, owns and operates a digital marketing services business under the trademark "Hyport Digital." These services include search engine optimization, search engine marketing, web design, email marketing, social media advertising, mobile and display advertising, and other related digital marketing services. Currently, Hyport Digital does not sell print advertising. There are no limitations on where Hyport Digital can solicit and sell its goods and services and Hyport Digital may sell its goods and services in your Territory and to the clients who purchase print advertisements in the Publication. The N2 Company shares our principal place of business and has no plan to implement separate offices or training facilities for the Hyport Digital business. We do not operate any Hyport Digital businesses.
Source: Item 12 — TERRITORY (FDD pages 42–44)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees have the right to sell digital advertising services outside of their assigned territory, but this is subject to Belocal's digital advertising and cross-selling policies, as well as the Franchise Brand Standards Manual. The only digital advertising services a franchisee is currently authorized to sell are the Extended Reach services.
Belocal retains the right to restrict franchisees from offering or selling advertisements to any client or prospective client at any time. This means that while franchisees have the general right to sell outside their territory under certain conditions, Belocal can override this right on a case-by-case basis.
Additionally, Belocal's affiliate, The N2 Company, operates a digital marketing services business under the trademark "Hyport Digital." There are no limitations on where Hyport Digital can solicit and sell its goods and services, and Hyport Digital may sell its goods and services in a franchisee's territory and to clients who purchase print advertisements in the Belocal publication. This could create competition for Belocal franchisees, as Hyport Digital is not restricted in the same way regarding territory.
Prospective franchisees should carefully review the digital advertising policies, cross-selling policies, and Franchise Brand Standards Manual to fully understand the scope and limitations of their right to sell digital advertising services outside their territory. They should also inquire about any potential conflicts or overlaps with Hyport Digital's sales activities.