Can a Belocal franchisee solicit or sell advertising to a Strategic Partner?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
We, our affiliates, or our other franchisees may, from time to time in our sole discretion, solicit, seek to establish, or establish one or more national or regional accounts with prospective advertisers and advertisers that may be located in, or have offices, branches, or some other presence, in your Territory ("Strategic Partners"). You have no right to solicit or sell advertising to a Strategic Partner, but we may, in our discretion, establish a policy allowing you to do so, and we may change such policy in our discretion at any time. If you attempt to sell advertising to a Strategic Partner, you must strictly comply with all of our requirements relating to such relationships, including honoring any pricing arrangement agreed to between us and such Strategic Partner. We reserve the right to designate, at any time, any advertiser as a Strategic Partner, including but not limited to those to whom you have already sold advertising.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees generally do not have the right to solicit or sell advertising to Strategic Partners. Belocal, its affiliates, or other franchisees may solicit or establish national or regional accounts with advertisers who have a presence in a franchisee's territory; these advertisers are designated as "Strategic Partners." However, Belocal retains the discretion to establish a policy allowing franchisees to solicit or sell to Strategic Partners, and this policy can be changed at any time.
If a Belocal franchisee attempts to sell advertising to a Strategic Partner, they must adhere strictly to Belocal's requirements, including honoring any pricing arrangements already agreed upon between Belocal and the Strategic Partner. Belocal also reserves the right to designate any advertiser as a Strategic Partner at any time, even those to whom a franchisee has already sold advertising.
This policy has significant implications for prospective Belocal franchisees. It means that some potential advertising clients within a franchisee's territory may be off-limits, or subject to special conditions, potentially impacting revenue. Franchisees need to stay informed about Belocal's policies regarding Strategic Partners and any changes to those policies. It would be prudent for a prospective franchisee to inquire about the current list of Strategic Partners in their target territory and the specific requirements for dealing with them.