For the Belocal franchise, how is the Managing Cross-Selling Fee calculated for the Managing Franchisee, and what deductions are applied to the monthly Cash Received for each print advertisement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) The Managing Franchisee (as defined by Franchisor's then-current Franchise Brand Standards Manual) would receive a Managing Cross-Selling Fee equal to 30% of the monthly Cash Received for each print advertisement, less the Royalty of 15% of the Cash Received.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Managing Cross-Selling Fee is calculated as 30% of the monthly Cash Received for each print advertisement. This fee applies when a franchisee manages a client who publishes a print advertisement in a publication managed by another franchisee. However, this fee is subject to certain deductions.
The deductions applied to the monthly Cash Received for each print advertisement include a Royalty fee, which is 15% of the Cash Received.
In summary, while the Managing Franchisee receives 30% of the monthly Cash Received for cross-sold print advertisements, this amount is reduced by a 15% Royalty fee. This calculation is subject to change by Belocal at any time, with no prior notice unless required by law, so prospective franchisees should stay informed of any updates to the fee structure.