How does a Belocal franchisee's commission change when another franchisee or Belocal's affiliate sells a print advertisement for inclusion in the franchisee's Publication?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) The Receiving Franchisee will receive a Receiving Cross-Selling Fee equal to 75% of the monthly Cash Received for that print advertisement, less the Royalty of 15% of the Cash Received and the Publication Expenses.
We have the right to change the Cross-Selling Fee to be calculated as follows:
- (i) The Selling Franchisee would receive an Outgoing Cross-Selling Fee equal to 10% of the monthly Cash Received for each print advertisement sold by the Selling Franchisee for inclusion in the publication managed by the Receiving Franchisee.
- (ii) The Managing Franchisee would receive a Managing Cross-Selling Fee equal to 30% of the monthly Cash Received for each print advertisement, less the Royalty of 15% of the Cash Received.
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, when another franchisee or Belocal's affiliate sells a print advertisement for inclusion in a franchisee's publication, the franchisee receives a Receiving Cross-Selling Fee. This fee is equal to 75% of the monthly Cash Received for that print advertisement, less the Royalty of 15% of the Cash Received and the Publication Expenses. Cash Received is defined as all revenue actually received by Belocal or its affiliates from advertisers, recipients of the Publication, or other parties related to each issue.
Belocal retains the right to modify how the Cross-Selling Fee is calculated. Under a changed calculation, the Receiving Franchisee would receive a Receiving Cross-Selling Fee equal to 60% of the monthly Cash Received for that print advertisement, less the Publication Expenses. It is important to note that the franchisee must comply with Belocal's policies, procedures, and guidelines related to cross-selling to be eligible to receive any Cross-Selling Fee.
Belocal also has the right to change the Cross-Selling Fee with no prior notice, unless otherwise required by law, and can terminate a franchisee's right to cross-sell or terminate the Franchise Agreement if the franchisee fails to comply with cross-selling policies. This highlights the importance of understanding and adhering to Belocal's cross-selling policies to maintain eligibility for these commissions and avoid potential penalties.