Does the Belocal franchisor have sole discretion in determining whether an advertiser is deemed a Strategic Partner?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has sole discretion in determining whether or not an advertiser or prospective advertiser is deemed a Strategic Partner.
Franchisee has no right to solicit or sell advertising to a Strategic Partner but Franchisor may, at its discretion, establish a policy allowing Franchisee to do so, which policy Franchisor can revise in its sole discretion at any time.
If Franchisee attempts to sell advertising to a Strategic Partner, Franchisee must strictly comply with all of Franchisor's or its affiliate's policies and requirements relating to such relationships, including honoring any pricing arrangement agreed to between Franchisor or its affiliate and each Strategic Partner.
Franchisor reserves the right to designate, at any time, any of Franchisee's advertisers as a Strategic Partner.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal retains sole discretion in determining whether an advertiser is considered a Strategic Partner. This means that Belocal, and not the franchisee, has the ultimate authority to classify advertisers as Strategic Partners.
This designation has significant implications for franchisees. Franchisees are prohibited from soliciting or selling advertising to Strategic Partners unless Belocal establishes a policy allowing them to do so, which Belocal can revise at any time. If a franchisee is permitted to sell to a Strategic Partner, they must adhere strictly to Belocal's policies and pricing arrangements.
Furthermore, Belocal reserves the right to designate any of a franchisee's existing advertisers as Strategic Partners at any time. This could potentially remove a significant client from a franchisee's portfolio, impacting their revenue. Prospective franchisees should carefully consider the potential impact of Strategic Partner designations on their business and revenue generation.