Can a Belocal franchisee solicit advertisers outside of their territory?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. Franchisee has the right to solicit advertisers inside or outside of its Territory to sell print advertisements that would be included in the Publication or in other N2 publications and the associated digital advertising services, but subject to the limitations set forth in this Agreement and only in compliance with Franchisor's then-current digital advertising policies, cross-selling policies, and the Franchise Brand Standards Manual. Franchisee must at all times comply with Franchisor's then-current print advertising policies, digital advertising policies, and the Franchise Brand Standards Manual. Franchisor also has the right to require Franchisee to sell packages of advertising goods and services, which may include print and digital components. Notwithstanding anything in this Agreement to the contrary, Franchisor has the right to restrict Franchisee from offering or selling advertisements in any form to any client or prospective client at any time. Franchisor has the right to allow other franchisees, affiliates of Franchisor, or any other party Franchisor deems appropriate to offer and sell advertising in any forms to clients located in Franchisee's Territory, without any liability to Franchisee. Franchisee shall obtain Franchisor's prior written consent before organizing an event that occurs more than 25 miles from Franchisee's Territory.
- B. Reserved Rights. The rights granted to Franchisee under this Agreement are nonexclusive, and Franchisee is not granted any territorial rights or other protection. Accordingly, Franchisor, its affiliates, and any other authorized person or entity shall, without limitation, have the right (1) to develop and establish other business systems (including systems that distribute products or services similar to those offered by the Franchised Business) using the Marks, or other names or marks, and to grant licenses to use those systems at any location without providing any rights to Franchisee; (2) to advertise and promote any N2 publications, N2 Co. businesses, and the businesses of Franchisor's franchisees, anywhere; (3) to operate, and license others to operate, any Franchised Business, N2 publication franchised businesses, or any business of any of Franchisor's affiliates, anywhere, including locations that are inside, adjacent to, or surrounded by Franchisee's Territory;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee has the right to solicit advertisers both inside and outside of their territory. This is specifically for selling print advertisements that would be included in Belocal publications, as well as associated digital advertising services. However, this right is subject to limitations outlined in the Franchise Agreement and must be done in compliance with Belocal's current digital advertising policies, cross-selling policies, and the Franchise Brand Standards Manual.
While franchisees can solicit advertisers outside their territory, Belocal retains significant control over these activities. Belocal has the right to restrict a franchisee from offering or selling advertisements to any client or prospective client at any time. Additionally, Belocal can allow other franchisees, its affiliates, or any other party it deems appropriate to sell advertising to clients located within a franchisee's territory, without any liability to the franchisee.
Belocal may also require franchisees to sell packages of advertising goods and services, which can include both print and digital components. Furthermore, franchisees must obtain Belocal's prior written consent before organizing any event that occurs more than 25 miles from their territory. These provisions highlight that while franchisees have some flexibility in soliciting advertisers, Belocal maintains considerable authority over advertising sales and marketing efforts within the Belocal system.
Another important consideration for prospective Belocal franchisees is the concept of "Strategic Partners." Belocal or its other franchisees may solicit or establish national or regional accounts with advertisers that may be located in or have a presence in a franchisee's territory. Belocal has sole discretion in determining whether an advertiser is deemed a Strategic Partner, and franchisees have no right to solicit or sell advertising to these Strategic Partners unless Belocal establishes a policy allowing them to do so. Belocal also reserves the right to designate any of a franchisee's advertisers as a Strategic Partner at any time, which could impact the franchisee's revenue and client relationships.