Is a Belocal franchisee allowed to distribute the Publication outside of their Territory?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
When you sign the Franchise Agreement, we will grant you the non-exclusive right and license to establish and operate the Franchised Business. You will be granted a non-exclusive geographic area ("Territory") described in Attachment B to the Franchise Agreement, within which you have the right to distribute the Publication. We do not allow you to relocate your Territory. You will not have the right to distribute the Publication to any person, community, or industry group outside of your Territory. 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.
Source: Item 12 — TERRITORY (FDD pages 42–44)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee is generally restricted from distributing the Publication outside of their designated territory. The FDD specifies that franchisees are granted a non-exclusive geographic area, or "Territory," within which they have the right to distribute the Publication. However, Belocal does not allow franchisees to relocate their Territory or distribute the Publication to individuals or groups outside of it.
Despite the territorial restrictions on distributing the Publication, Belocal franchisees have the right to sell print and digital advertising services to clients located both inside and outside of their Territory. This is subject to Belocal's digital advertising policies, cross-selling policies, and Franchise Brand Standards Manual. This provision allows franchisees to expand their client base beyond their immediate territory for advertising sales, providing a potential avenue for revenue growth.
It's important to note that Belocal retains the right to allow other franchisees or affiliates to offer and sell advertising in all forms to clients located within a franchisee's Territory. Additionally, Belocal, its affiliates, and any authorized entities have the right to develop other business systems and distribute similar products or services under the Belocal marks without providing any rights or compensation to the franchisee, even within the franchisee's Territory. These stipulations highlight the non-exclusive nature of the territory and the potential for competition from both within and outside the Belocal franchise system.