Are Belocal franchisees obligated to use the optional services offered by Belocal?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) 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.
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. While franchisees can promote and solicit the sale of Hyport Digital goods and services, they must conduct business in a manner that reflects favorably on Hyport Digital and the Belocal brand.
Franchisees must direct all payments for Hyport Digital goods and services to Belocal's affiliate. Franchisees and their staff are prohibited from making representations on behalf of Belocal's affiliate or Belocal, except as expressly authorized, and must not engage in unfair or deceptive practices regarding Hyport Digital goods and services.
Belocal also allows franchisees to organize local events for advertisers and community members, subject to the agreement's terms and the Franchise Brand Standards Manual. Belocal retains the right to implement a royalty on revenue generated from these events, providing 90 days' notice before implementing or changing the royalty. Franchisees are required to use Belocal's designated credit card processing platform for event payments and must pay Belocal's or its affiliate's credit card fee on such payments, which may include transaction fees and an administration fee.