Does a Belocal franchisee have an obligation to solicit leads for and facilitate client relationships with Hyport Digital?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor hereby grants Franchisee the conditional, non-exclusive right and license to, and Franchisee hereby accepts the right and option to solicit leads for and facilitate client relationships with Hyport Digital. Franchisee acknowledges and agrees that Franchisee may be required to complete and obtain certifications and training and meet other standards set forth in the Franchise Brand Standards Manual in order to qualify to conduct some or all of the foregoing activities. Franchisee acknowledges and agrees that the foregoing activities are optional and not required under the terms of this Agreement. Franchisee acknowledges and agrees that its opportunity to solicit leads for and facilitate client relationships with Hyport Digital is subject to all of the terms of this Agreement and standards in the Franchise Brand Standards Manual and is part of its operations of the Franchised Business. If Franchisee fails to comply with any requirements pertaining to Hyport Digital, including without limitation, its goods, services, clients, operations, and trademarks, Franchisee shall be in default under this Agreement. Franchisee's rights to solicit leads for and facilitate client relationships with Hyport Digital are conditioned upon Franchisor maintaining the Hyport Digital sales program. Franchisor has the right to modify and/or completely eliminate Franchisee's rights with respect to Hyport Digital in its sole discretion. The goods and services offered by Hyport Digital may be changed in Franchisor's affiliate's sole discretion.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee is not required to solicit leads for and facilitate client relationships with Hyport Digital. While Belocal grants the franchisee the right and option to do so, these activities are optional. However, if a franchisee chooses to engage in these activities, they may be required to complete certifications and training and meet other standards outlined in the Franchise Brand Standards Manual.
If a Belocal franchisee chooses to solicit leads and facilitate client relationships with Hyport Digital, they must conduct business in a manner that reflects favorably on Hyport Digital's goods and services, as well as the reputation of the Belocal brand and its affiliates. Franchisees must also ensure that all payments for Hyport Digital goods and services are directed to Belocal's affiliate. Furthermore, franchisees and their staff are prohibited from making representations on behalf of Belocal's affiliate or regarding Hyport Digital's offerings, unless expressly authorized, and must avoid any unfair, misleading, or deceptive practices.
Belocal retains the right to modify or eliminate a franchisee's rights related to Hyport Digital at its discretion, and the goods and services offered by Hyport Digital can be changed by Belocal's affiliate. Franchisees who fail to comply with the requirements pertaining to Hyport Digital, including its goods, services, clients, operations, and trademarks, will be in default under the Franchise Agreement. Franchisees can receive a commission for Hyport Digital sales, but the amount, due date, and calculation of this commission are subject to change by Belocal.