Following termination of the Belocal agreement, what is the time period used to determine which business advertisers the franchisee is prohibited from soliciting?

According to Belocal's 2025 Franchise Disclosure Document, for a period of two years after the termination, expiration, or transfer of the Franchise Agreement, a franchisee is restricted from soliciting business advertisers of Belocal. This restriction applies to advertisers with whom the franchisee or their principals interacted during the twelve-month period prior to the termination, expiration, or transfer of the agreement. The non-solicitation applies regardless of the reason for termination, expiration, or transfer of the agreement.

This means that a former Belocal franchisee cannot actively pursue or attempt to gain business from advertisers they had dealings with in the year leading up to the end of their franchise agreement. This restriction is in place to protect Belocal's existing business relationships and prevent a former franchisee from unfairly leveraging their knowledge and contacts gained while operating under the Belocal brand. The restriction applies to any form of communication, whether oral, written, or electronic.

The restriction is limited to soliciting for goods or services that are competitive with those offered by Belocal. This allows a former franchisee to work with previous advertisers, provided they are not offering competing services. This post-term non-solicitation clause is a standard practice in franchising to safeguard the franchisor's business and customer base.

It is important for prospective Belocal franchisees to understand the scope and duration of this non-solicitation clause, as it could impact their ability to engage with certain businesses after leaving the Belocal system. Franchisees should carefully consider this restriction and how it might affect their future business endeavors.