Can Belocal franchisees organize local events for advertisers?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees can organize local events for advertisers, members of communities, and/or members of industry groups, subject to the terms of the Franchise Agreement and the Franchise Brand Standards Manual.
Belocal retains the right to implement a royalty on revenue generated from these events and can change the royalty rate with ninety days' notice to the franchisee. Franchisees must use Belocal's designated credit card processing platform to collect payments from sponsors or participants and must 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 involvement in administering the payment platform.
This means that while Belocal franchisees have the option to organize local events to generate revenue, they must adhere to Belocal's standards and policies. Belocal also has control over the revenue through royalties and payment processing fees, which could impact the profitability of these events for the franchisee. Franchisees should factor in these potential costs and restrictions when planning and budgeting for local events.