How does a Belocal franchisee's use of N2 Franchisee Services affect their commission payment?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) The optional N2 Franchisee Services currently include client ad strategy services. Future optional services may include premium versions of the client ad strategy services, content services, writing and editing services, business strategy coaching, social media management services, administrative services, consulting services, or client care services. This is not an exhaustive list of potential optional services and neither we nor our affiliate is obligated to make any of these optional services available to our franchisees. Our affiliate may establish and change the prices for current and future services in its discretion.
- (7) We may adjust the amount of any flat fee (meaning a fee that is a flat dollar amount) to account for inflation. Up to one time per calendar year, we will have the right to increase each flat fee by an amount up to the yearly cost-of-living adjustment ("COLA") percentage identified by the United States Social Security Administration or similar metric of inflation we deem reliable (such as the Consumer Price Index (U.S. Average, all items) maintained by the United States Department of Labor). By way of example only, if the COLA adjustment for 2027 were 3%, then on a single occasion in 2027 we could raise each flat fee by up to 3%.
Additionally, the amounts of the inflation adjustments are cumulative and, if not applied in one year, may be applied in future years.
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the optional N2 Franchisee Services include client ad strategy services. Future optional services may include premium versions of the client ad strategy services, content services, writing and editing services, business strategy coaching, social media management services, administrative services, consulting services, or client care services. Belocal is not obligated to make these optional services available to franchisees, and its affiliate may establish and change the prices for current and future services at its discretion.
Item 6 of the FDD also mentions that a Belocal franchisee's commission may be affected by fees for services that Belocal or its affiliates provide, including any optional services the franchisee elects to receive from them. This implies that if a franchisee chooses to use N2 Franchisee Services, the fees for those services would be deducted from their commission payment.
In general, franchisees should carefully evaluate the costs and benefits of any optional services offered by the franchisor or its affiliates. While these services may provide valuable support, they can also impact the franchisee's overall profitability. It is important to understand the pricing structure and how the fees for these services will be deducted from commission payments.