What must a Belocal franchisee comply with to be eligible to receive the Outgoing Cross-Selling Fee when selling print advertising for another franchisee's publication?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, if Franchisee sells print advertising for a publication that is the responsibility of another franchisee, then Franchisee shall be eligible to receive Franchisor's then-current Outgoing Cross-Selling Fee for such sale(s), as set forth in the Franchise Brand Standards Manual, provided Franchisee complies with Franchisor's then-current policies, procedures, and guidelines related to cross-selling. Franchisor shall have the right to terminate Franchisee's right to cross-sell or this Agreement if Franchisee fails to comply with Franchisor's policies, procedures, and guidelines related to cross-selling. Currently, the Cross-Selling Fees are calculated as follows:
- (i) The Selling Franchisee will receive an Outgoing Cross-Selling Fee equal to 25% of the monthly Cash Received for each print advertisement sold by the Selling Franchisee that will be included in the publication managed by the Receiving Franchisee.
- (ii) The Receiving Franchisee will receive a Receiving Cross-Selling Fee equal to 75% of the monthly Cash Received for that print advertisement, less the Royalty of 15% of the Cash Received and the Publication Expenses.
Any time during the Term of this Agreement, with no prior notices unless otherwise required by law, Franchisor reserves the right to change the Cross-Selling Fee to be calculated as follows:
- (i) The Selling Franchisee would receive an Outgoing Cross-Selling Fee equal to 10% of the monthly Cash Received for each print advertisement sold by the Selling Franchisee that will be included in the publication managed by the Receiving Franchisee.
- (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.
- (iii) The Receiving Franchisee would receive a Receiving Cross-Selling Fee equal to 60% of the monthly Cash Received for that print advertisement, less the Publication Expenses.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee is eligible to receive the Outgoing Cross-Selling Fee when selling print advertising for a publication that is the responsibility of another franchisee, provided the franchisee complies with Belocal's then-current policies, procedures, and guidelines related to cross-selling. These policies, procedures, and guidelines are further detailed in the Franchise Brand Standards Manual.
Belocal retains the right to terminate a franchisee's right to cross-sell or terminate the Franchise Agreement if the franchisee fails to comply with these cross-selling policies, procedures, and guidelines. This underscores the importance of adhering to Belocal's standards to maintain the ability to earn cross-selling fees and avoid potential penalties.
Currently, the Outgoing Cross-Selling Fee is 25% of the monthly cash received for each print advertisement sold by the selling franchisee that will be included in the publication managed by the receiving franchisee. The receiving franchisee gets 75% of the monthly cash received for that print advertisement, less the royalty of 15% of the cash received and the publication expenses. Belocal reserves the right to change the Cross-Selling Fee structure, potentially altering the percentages received by the selling and receiving franchisees. If the fee structure changes, the selling franchisee would receive 10% of the monthly cash received, the managing franchisee would receive 30% of the monthly cash received less the royalty of 15% of the cash received, and the receiving franchisee would receive 60% of the monthly cash received less the publication expenses.