What must a Belocal franchisee do to use the optional services offered by the franchisor or its affiliates?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
) Subject to the terms of this Agreement and the policies and requirements of the Franchise Brand Standards Manual, and at Franchisee's option, solicit leads for and facilitate client relationships with Hyport Digital. At all times when Franchisee is promoting or soliciting the sale of Hyport Digital goods and services or interaction with Hyport Digital leads and clients, Franchisee shall conduct business in a manner that reflects favorably upon the Hyport Digital goods and services and upon the good name, goodwill, and reputation associated with the Marks, Franchisor, and Franchisor's affiliates. At all times, all payments for Hyport Digital goods and services shall be directed to Franchisor's affiliate. Neither Franchisee nor any of its Independent Staff shall directly or indirectly (i) make any representations on behalf of Franchisor's affiliate or Franchisor or with respect to the Hyport Digital goods and services, except such as are expressly authorized by Franchisor's affiliate or Franchisor or are set forth in their authorized sales materials or (ii) engage in any unfair, misleading, or deceptive practices with respect to the Hyport Digital goods and services.
- (9) Subject to the terms of this Agreement and the policies and requirements of the Franchise Brand Standards Manual, organize local events for advertisers and, as applicable, members of Communities and/or members of Industry Groups. Franchisor has the right to implement a royalty on revenue generated from these events, which Franchisor can implement and subsequently change upon ninety (90) days' notice to Franchisee. Franchisee agrees to use the credit card processing platform that Franchisor designates to collect payments by credit card from sponsors or other participants in the event. Franchisee agrees to pay Franchisor's or its affiliate's then-current credit card fee on such payments. This fee may include the credit card transaction fees and a reasonable fee for Franchisor's or its affiliate's involvement with the administration of the payment platform. Franchisor may adjust the credit card fee in its discretion and on thirty (30) days' notice to Franchisee.
- F. Participation in Strategic Partner Arrangements. Franchisor or other of Franchisor's franchisees may, from time to time, 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 Franchisee's Territory ("Strategic Partners"). Franchisor has sole discretion in determining whether or not an advertiser or prospective advertiser is deemed a Strategic Partner. Franchisee has no right to solicit or sell advertising to a Strategic Partner but Franchisor may, at its discretion, establish a policy allowing Franchisee to do so, which policy Franchisor can revise in its sole discretion at any time. If Franchisee attempts to sell advertising to a Strategic Partner, Franchisee must strictly comply with all of Franchisor's or its affiliate's policies and requirements relating to such relationships, including honoring any pricing arrangement agreed to between Franchisor or its affiliate and each Strategic Partner. Franchisor reserves the right to designate, at any time, any of Franchisee's advertisers as a Strategic Partner.
- G. Participation in Conferences. Franchisor may, but is not required to, offer, host, or arrange for national and/or regional conferences to be held one or more times each year. If Franchisor requires
Franchisee's attendance at any such conference, then Franchisee shall attend and pay all related travel and attendance costs, which may include an attendance fee.
H. Office; Equipment.
- (1) Franchisee may operate the Franchised Business from any facility it chooses, which may be Franchisee's home.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees have the option to solicit leads and facilitate client relationships with Hyport Digital, subject to the terms of the Franchise Agreement and the Franchise Brand Standards Manual. When promoting or soliciting sales for Hyport Digital's goods and services, franchisees must conduct business in a manner that reflects favorably on Hyport Digital and the Belocal brand. All payments for Hyport Digital goods and services must be directed to Belocal's affiliate. Franchisees cannot make representations on behalf of Belocal's affiliate or Belocal, except as expressly authorized or set forth in authorized sales materials, and they must not engage in unfair, misleading, or deceptive practices regarding Hyport Digital's goods and services.
Belocal franchisees also have the option to organize local events for advertisers and members of Communities or Industry Groups, subject to the terms of the Franchise Agreement and the Franchise Brand Standards Manual. Belocal has the right to implement a royalty on revenue generated from these events, with a 90-day notice to the franchisee before implementation or changes. Franchisees must use Belocal's designated credit card processing platform to collect payments from sponsors or participants and pay Belocal's or its affiliate's then-current credit card fee on such payments, which may include transaction fees and a reasonable fee for Belocal's or its affiliate's involvement with the administration of the payment platform.
In general, Belocal franchisees must receive prior, written approval from Belocal before purchasing any products, supplies, or services from any supplier not already approved by Belocal. If a franchisee wants to use an unapproved supplier, they must submit a written request to Belocal, or the supplier must make the request. Belocal will consider factors such as pricing, quality, consistency, efficiency, data security, and solvency when reviewing the request. Belocal may also request that the franchisee pay or reimburse Belocal for reasonable expenses incurred during the supplier/item approval process, regardless of whether approval is granted. Belocal can also inspect the supplier's business premises, software, security systems, or procedures and require samples for testing, with the franchisee or supplier covering the costs of inspection and testing.