What must a Belocal franchisee do through its Principal and/or operations manager regarding advertising?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. Franchisee, through its Principal and/or operations manager, must diligently promote the sale of, and stimulate interest in, advertising in the Publication that Franchisee manages, however Franchisee must not agree, represent, or warrant to any advertiser that such advertiser will have any exclusive advertising rights and/or protection from competing advertisers.
In promoting the Publication, Franchisee, its Principal(s), operations manager, and other representatives, must:
(1) Solicit contracts for print advertising in the Publication from advertisers and digital advertising services ("Advertising Contracts"), quoting prices and terms set by Franchisor or its affiliate (or otherwise approved by Franchisor in writing), and using the form contracts provided by Franchisor or its affiliate. To the fullest extent permitted by applicable law, Franchisor and/or its affiliate reserve the right to establish maximum, minimum, or other pricing requirements with respect to Advertising Contracts. Moreover, Franchisor or its affiliate shall have ultimate discretion regarding whether to enter into any Advertising Contract. All Advertising Contracts, or other contracts related to the Publication, must be between Franchisor or its affiliate and the applicable Community, Industry Group, or advertiser, and Franchisee shall not be a party to, or a third-party beneficiary of, any such Advertising Contract or any
other contract relating to the Publication. Additionally, all fees and amounts payable under the Advertising Contracts must be paid directly to Franchisor or its affiliate or their designee, as applicable, in accordance with the terms thereof, and Franchisee must not accept any payments from any Community, Industry Group, or advertiser, nor shall Franchisee make payments on behalf of any Community, Industry Group, or advertiser for any reason. Franchisor may terminate this Agreement for Franchisee's failure to comply with the requirements set forth in this Section 5.E.(1). Franchisee shall not enter into Advertising Contracts or any other contract related to the Publication on Franchisor or its affiliate's behalf, and Franchisor and its affiliates are party to any Advertising Contract or any other contract related to the Publication, not Franchisee or its Principals.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee, through its Principal and/or operations manager, is required to actively promote the sale of and generate interest in advertising within the Belocal publication that the franchisee manages. However, the franchisee is explicitly prohibited from guaranteeing any advertiser exclusive advertising rights or protection from competitors.
In promoting the Belocal publication, the franchisee, along with its Principal(s), operations manager, and other representatives, must solicit contracts for print advertising in the Publication from advertisers and digital advertising services, quoting prices and terms set by Belocal or its affiliate (or otherwise approved by Belocal in writing), and using the form contracts provided by Belocal or its affiliate. Belocal and/or its affiliate reserve the right to establish maximum, minimum, or other pricing requirements with respect to Advertising Contracts. Moreover, Belocal or its affiliate shall have ultimate discretion regarding whether to enter into any Advertising Contract.
All Advertising Contracts, or other contracts related to the Publication, must be between Belocal or its affiliate and the applicable Community, Industry Group, or advertiser, and Franchisee shall not be a party to, or a third-party beneficiary of, any such Advertising Contract or any other contract relating to the Publication. Additionally, all fees and amounts payable under the Advertising Contracts must be paid directly to Belocal or its affiliate or their designee, as applicable, in accordance with the terms thereof, and Franchisee must not accept any payments from any Community, Industry Group, or advertiser, nor shall Franchisee make payments on behalf of any Community, Industry Group, or advertiser for any reason. Belocal may terminate the Franchise Agreement for Franchisee's failure to comply with these requirements. Franchisee shall not enter into Advertising Contracts or any other contract related to the Publication on Belocal or its affiliate's behalf, and Belocal and its affiliates are party to any Advertising Contract or any other contract related to the Publication, not Franchisee or its Principals.