Is the Belocal franchisee allowed to distribute the Publication outside of their designated Territory?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor hereby grants Franchisee the non-exclusive right and license, and Franchisee hereby accepts the right and obligation, to establish and operate the Franchised Business.
Franchisee acknowledges and agrees that this Agreement grants Franchisee the right to operate only the Franchised Business and to distribute the Publication only within the Territory set forth in Attachment B.
Franchisee has no right to distribute the Publication to any person, Community, or Industry Group outside of Franchisee's Territory.
Franchisee has the right to solicit advertisers inside or outside of its Territory to sell print advertisements that would be included in the Publication or in other N2 publications and the associated digital advertising services, but subject to the limitations set forth in this Agreement and only in compliance with Franchisor's then-current digital advertising policies, cross-selling policies, and the Franchise Brand Standards Manual.
Franchisee must at all times comply with Franchisor's then-current print advertising policies, digital advertising policies, and the Franchise Brand Standards Manual.
Franchisor also has the right to require Franchisee to sell packages of advertising goods and services, which may include print and digital components.
Notwithstanding anything in this Agreement to the contrary, Franchisor has the right to restrict Franchisee from offering or selling advertisements in any form to any client or prospective client at any time.
Franchisor has the right to allow other franchisees, affiliates of Franchisor, or any other party Franchisor deems appropriate to offer and sell advertising in any forms to clients located in Franchisee's Territory, without any liability to Franchisee.
Franchisee shall obtain Franchisor's prior written consent before organizing an event that occurs more than 25 miles from Franchisee's Territory.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees are generally restricted from distributing the Publication outside of their designated territory. The agreement specifies that franchisees have the right to operate the Franchised Business and distribute the Publication only within the Territory outlined in Attachment B. Franchisees are explicitly prohibited from distributing the Publication to individuals, Communities, or Industry Groups located outside of their assigned Territory. This restriction ensures that each franchisee focuses on developing and serving their specific geographic area.
However, the Belocal FDD does state that franchisees have the right to solicit advertisers both inside and outside of their territory. This is permitted for the purpose of selling print advertisements that will be included in the Publication or other N2 publications, along with associated digital advertising services. This activity is subject to the limitations outlined in the Franchise Agreement and must comply with Belocal's current digital advertising policies, cross-selling policies, and the Franchise Brand Standards Manual. This allows franchisees to expand their advertising sales efforts beyond their immediate territory while still respecting territorial boundaries for distribution.
Despite the territorial restrictions, Belocal retains significant rights, including the right to allow other franchisees, affiliates, or any other party it deems appropriate to offer and sell advertising within a franchisee's territory without any liability. Furthermore, Belocal has the discretion to change a franchisee's Territory, including its size, shape, boundaries, and population, with ninety (90) days' notice. These reserved rights highlight that while franchisees have a designated territory, Belocal maintains considerable control over market operations and territorial assignments.