Can a Belocal franchisee market services outside their territory?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement provides you with the right to sell print advertising for print publications. You will also have the right to sell digital advertising services and to organize local events. Currently the only digital advertising services you are authorized to sell are the Extended Reach services. You may not market or sell any services outside your Territory, except print advertisements for inclusion in the Publication or the publications managed by others and digital advertising services, subject to our cross-selling policies and digital advertising policies, without our prior written consent. You have no right to sell goods or any other services through any other channel of distribution – whether inside or outside of your Territory. You may not organize events held more than 25 miles from your Territory without obtaining our prior written consent. We have the right to restrict you from offering or selling advertisements of any kind to any client or prospective client at any time.
If you choose to, you may solicit leads for Hyport Digital as part of your Franchised Business and receive a commission on referrals. You will also have the opportunity to facilitate the client relationships between such leads and Hyport Digital and receive a commission associated with such relationship management services. There are no restrictions on where you may solicit leads for Hyport Digital or restrictions on the location of the clients for which you facilitate the relationship with Hyport Digital. Your opportunity to solicit leads for and facilitate client relationships with Hyport Digital is conditioned on the continuance of
the sales program. We may modify and discontinue this program in our sole discretion. We may require you to complete certain training and certifications in order to qualify to facilitate a client's relationship with Hyport Digital.
Source: Item 12 — TERRITORY (FDD pages 42–44)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees are generally restricted from marketing or selling services outside of their designated territory. However, there are exceptions. Belocal franchisees can sell print advertisements for inclusion in their own publication or publications managed by others, regardless of location. Additionally, franchisees can sell digital advertising services outside their territory, provided they adhere to Belocal's cross-selling and digital advertising policies.
However, Belocal franchisees are prohibited from selling any other goods or services through any other channels of distribution outside their territory. Furthermore, franchisees need prior written consent from Belocal to organize events held more than 25 miles from their territory. Belocal retains the right to restrict franchisees from offering or selling advertisements to any client or prospective client at any time.
Belocal also offers an opportunity to solicit leads for Hyport Digital and receive commissions, with no restrictions on where these leads are solicited or the location of the clients. This opportunity is contingent on the continuation of the sales program, which Belocal can modify or discontinue at its sole discretion. Franchisees may need to complete specific training and certifications to qualify for facilitating client relationships with Hyport Digital.
In summary, while Belocal franchisees primarily operate within their assigned territory, they have limited exceptions to market print and digital advertising services outside of it, subject to certain conditions and Belocal's policies. They can also solicit leads for Hyport Digital without geographic limitations, provided they comply with the program's requirements.