Can a Belocal franchisee solicit advertisers outside of their territory, and if so, are there any limitations?
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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees have the right to solicit advertisers both inside and outside of their territory to sell print advertisements for Belocal publications, as well as associated digital advertising services. However, this right is subject to certain limitations outlined in the Franchise Agreement and must comply with Belocal's current digital advertising policies, cross-selling policies, and the Franchise Brand Standards Manual.
Belocal retains the right to restrict franchisees 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. This indicates that while franchisees can solicit outside their territory, Belocal maintains significant control over advertising sales within the Belocal system.
Franchisees must obtain Belocal's prior written consent before organizing an event that occurs more than 25 miles from their territory. This condition suggests that while franchisees can solicit advertisers outside their territory, activities like events require additional approval if they extend beyond a certain distance. This ensures that Belocal maintains oversight and control over promotional activities that could impact the brand's image or other franchisees' territories.
These provisions highlight the importance of franchisees understanding and adhering to Belocal's policies and guidelines regarding advertising sales and promotional activities. Prospective franchisees should carefully review these policies and seek clarification from Belocal regarding any uncertainties to ensure compliance and avoid potential conflicts.