Does Belocal grant franchisees an exclusive territory?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Y
You will not receive an exclusive territory. You may face competition from other franchisees, from businesses owned by us or our affiliates, or from other channels of distribution or competitive brands that we control.
When you sign the Franchise Agreement, we will grant you the non-exclusive right and license to establish and operate the Franchised Business. You will be granted a non-exclusive geographic area ("Territory") described in Attachment B to the Franchise Agreement, within which you have the right to distribute the Publication. We do not allow you to relocate your Territory. You will not have the right to distribute the Publication to any person, community, or industry group outside of your Territory. You have the right to sell and offer to sell print advertising and digital advertising services to clients located both inside and outside of your Territory, but only in accordance with our then-current digital advertising policies, crossselling policies and Franchise Brand Standards Manual. We also have the right to allow other franchisees or affiliates to offer and sell advertising in all forms to clients located in your Territory.
Your Territory will be defined by geographic boundaries or descriptions we select. We do not grant any minimum territory. The actual size of the Territory will vary depending upon the availability of markets, our long-range plans, your financial and operational resources, and market conditions. A written description of the Territory will be inserted in Attachment B to the Franchise Agreement before you sign the Franchise Agreement. The boundaries used to define the Territory will be geographic boundaries as configured on the effective date of the Franchise Agreement, which may be described as certain neighborhoods, subdivisions, or communities, or a specific home count in an area, as determined by us. We have the sole discretion to change your Territory, including its size, shape, boundaries, and population, upon ninety (90) days' notice to you.
We divide each calendar year into four periods of three months each, and we call these periods "Quarters." For the Publication, we require you to (1) maintain a minimum, monthly Commission for the term of your Franchise Agreement, which is currently at least $3,000 per month for each of the BELOCAL ® publications you manage; (2) include a minimum of 28 pages that meet our standards in each issue of the Publication; (3) include the number of articles each month on the topics required in the Franchise Brand Standards Manual; and (4) complete a minimum number of Qualified Sales (as defined in the Franchise Brand Standards Manual) each Quarter. We may change our minimum Commission, page number, article, Qualified Sales, and Quarter requirements in our discretion during the Term of the Franchise Agreement. Although subject to change, currently the Qualified Sale requirement is that you make three Qualified New Sales (or the sale of a new advertising contract that has a term of at least 12 months and generates Cash Received of at least $150 per month) per Quarter. If you fail to satisfy any of the requirements listed in clauses (1) through (4) above, we may provide you with a business improvement plan ("Business Improvement Plan") with strategies and metrics for returning to compliance. Additionally, you will have various deadlines for the content, review, publishing, approval, etc. of the Publication and you must meet each deadline. Failure to satisfy any of these requirements is a default under the Franchise Agreement and is grounds for termination of the Franchise Agreement.
We also require you to make a minimum number of Qualified Sales in the first sixteen weeks of your operation of the Franchised Business ("Pre-Print Sales Requirement"). Although subject to change, currently the Pre-Print Sales Requirement is that you make at least ten Qualified Sales in the first sixteen weeks of your operation of the Franchised Business.
Source: Item 12 — TERRITORY (FDD pages 42–44)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. Belocal grants a non-exclusive geographic area, referred to as the "Territory," within which the franchisee has the right to distribute the publication. This territory is described in Attachment B to the Franchise Agreement. However, franchisees may face competition from other franchisees, businesses owned by Belocal or its affiliates, or other channels of distribution or competitive brands controlled by Belocal. Belocal retains the right to allow other franchisees or affiliates to offer and sell advertising in all forms to clients located within a franchisee's territory.
The territory's boundaries are defined by geographic descriptions selected by Belocal, with the actual size varying based on market availability, Belocal's long-range plans, the franchisee's resources, and market conditions. These boundaries may include specific neighborhoods, subdivisions, communities, or a specific home count in an area. Belocal has the sole discretion to change a franchisee's territory, including its size, shape, boundaries, and population, with ninety days' notice. Franchisees do not have options or rights of first refusal to acquire franchises for other territories, and any additional franchised business requires a separate franchise agreement.
Belocal, its affiliates, and other authorized entities retain the right to develop other business systems, including those that distribute similar products or services, using Belocal's marks or other names/marks, and to grant licenses for these systems at any location without providing any rights to the franchisee. They can also advertise and promote any business of The N2 Company or any N2 Franchising, Inc. franchised business anywhere, and operate or license others to operate any business of The N2 Company or any N2 Franchising, Inc. franchised business or any publishing business of their affiliates anywhere, even within the franchisee's territory. They can also engage in the production, distribution, and sale of various forms of media and services without compensating the franchisee, regardless of the impact on the franchised business. Belocal is under no obligation to compensate franchisees if they solicit or accept orders from within the franchisee's territory.
This lack of exclusivity is a significant factor for prospective franchisees to consider. It means that Belocal franchisees could face direct competition from other franchisees, from Belocal itself, or from other businesses authorized by Belocal, even within their designated territory. This could impact their ability to generate revenue and build a customer base. It is important for potential franchisees to carefully evaluate the market conditions in their desired territory and to understand the potential for competition before investing in a Belocal franchise.