Is a Belocal franchisee required to purchase client ad strategy services or lead generation services from The N2 Company?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
s
Our affiliate, The N2 Company, is approved to supply you with optional services for your Franchised Business. Currently, these optional services include client ad strategy services and lead generation services. The service offerings are subject to change. Additional services may be approved while other existing services may be discontinued. To receive these optional services, you must enter into an N2 Franchisee Services Agreement with our affiliate. The current form of N2 Franchisee Services Agreement is attached to this disclosure document as Exhibit F. There are additional fees associated with these optional services. Future optional services may include premium versions of the client ad strategy services, content services, writing and editing services, business strategy coaching, social media management services, administrative services, consulting services, or client care services. This is not an exhaustive list of potential optional services and neither we nor our affiliate is obligated to make any such services available to our franchisees. Our affiliate may establish and change the prices for current and future services in its discretion.
Revenue Derived
Our Directors, Duane Hixon and Earl Seals, have ownership interests in The N2 Company, which is approved to supply you with optional services. Neither we, nor our affiliate, nor any of our respective officers owns an interest in any other privately held suppliers or a material interest in any publicly held suppliers of our franchise system. During our fiscal year July 1, 2024 through June 30, 2025, we received no revenue or other material consideration from required purchases or leases by franchisees. During its fiscal year July 1, 2024 through June 30, 2025, The N2 Company received no revenue from our franchisees' required purchases or leases.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–35)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees are not required to purchase client ad strategy services or lead generation services from The N2 Company. The FDD specifies that The N2 Company, an affiliate of Belocal, is approved to supply optional services to franchisees. These optional services currently include client ad strategy services and lead generation services, but these offerings are subject to change, with new services potentially being added or existing ones discontinued. To utilize these optional services, a franchisee must enter into an N2 Franchisee Services Agreement with The N2 Company, which is included as an exhibit in the FDD. There are additional fees associated with these optional services.
Future optional services may include premium versions of client ad strategy services, content services, writing and editing services, business strategy coaching, social media management services, administrative services, consulting services, or client care services. However, neither Belocal nor its affiliate is obligated to make any of these services available to franchisees. The N2 Company has the discretion to establish and change the prices for both current and future services.
Duane Hixon and Earl Seals, who are Directors of Belocal, have ownership interests in The N2 Company. During the fiscal year from July 1, 2024, through June 30, 2025, neither Belocal nor The N2 Company received any revenue from franchisees' required purchases or leases. This indicates that while certain purchases are required, these specific services from The N2 Company are not among them, providing franchisees with the flexibility to choose whether or not to engage these services.