What is the franchisee's primary activity in operating a Belocal Franchised Business?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
:
- (i) selling digital and/or print advertising to businesses for publication in or related to digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
- (ii) publishing and/or facilitating the publishing of digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
- (iii) developing relationships among members of Communities within the Territory, or members of Industry Groups within the Territory and within ten miles of the Territory, for the purpose of selling or marketing digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
- (iv) organizing, sponsoring, or hosting events for advertisers in the Publication or members of Communities within the Territory, or members of Industry Groups within the Territory and within ten miles of the Territory, for the purpose of selling or marketing digital or print publications, or digital or print advertising in digital or print publications, that compete with any N2 publication(s); or
- (v) offering or selling digital marketing and advertising services which are offered or sold by Franchisor or its affiliates or are or were offered and sold by Franchisee.
- H. Reasonableness of Covenants. Franchisee and Principals agree that the preceding covenants contain reasonable limitations as to time, geographical area, and scope of activity to be restrained and do not impose a greater restraint than is necessary to protect the goodwill or other legitimate business interests of Franchisor. Each of the covenants herein shall be construed as independent of any other covenant or provision of this Agreement. If all or any portion of a covenant in this Section 7. is held unreasonable or unenforceable by a court or agency having valid jurisdiction in an unappealed final decision to which Franchisor is a party, Franchisee and Principals expressly agree to be bound by any lesser covenant subsumed within the terms of such covenant that imposes the maximum duty permitted by law, as if the resulting covenant were separately stated in and made a part of this Section 7. Franchisee and Principals further understand and agree that Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Section 7., or any portion thereof, without the consent of Franchisee or any
Principal, effective immediately upon notice to Franchisee or Principals, and Franchisee and Principals agree that they will promptly comply with any covenant as so modified.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchisee's primary activities involve several key aspects related to publishing and advertising. These include selling digital and/or print advertising, publishing digital or print publications, developing relationships within communities and industry groups, organizing events for advertisers, and offering digital marketing and advertising services. These activities are all aimed at promoting Belocal publications and services within the franchisee's territory.
Specifically, the franchisee is responsible for managing and promoting the sale of advertising in the Belocal publication they manage. However, they cannot guarantee any advertiser exclusive rights or protection from competitors. The franchisee must also ensure that their operations manager, if applicable, is properly trained and has executed the necessary confidentiality and non-solicitation agreements. This ensures that the business is managed effectively and in compliance with Belocal's standards.
Additionally, the franchisee must adhere to Belocal's brand standards and use the Marks and Copyrighted Materials correctly for advertising and promoting the Franchised Business. This includes using the Marks in the precise form prescribed by Belocal and observing their directions regarding presentation and display. The franchisee must also promptly provide any information relating to the Franchised Business as required by Belocal or its affiliates, and respond to requests for direction, information, or approvals necessary for Belocal to perform its obligations or for the relevant affiliate to publish the Publication.