What happens if a Belocal franchisee fails to satisfy the Pre-Print Sales Requirement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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. If you fail to satisfy the Pre-Print Sales Requirement, we may provide you with a Business Improvement Plan with metrics and strategies for you to improve your sale of advertising contracts. Failure to successfully complete any Business Improvement Plan is a default under the Franchise Agreement and is grounds for termination of the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 42–44)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a franchisee fails to meet the Pre-Print Sales Requirement, Belocal may provide a Business Improvement Plan. The Pre-Print Sales Requirement mandates that a franchisee must make at least ten Qualified Sales within the first sixteen weeks of operating the franchised business. These Qualified Sales refer to new advertising contracts with a term of at least 12 months that generate Cash Received of at least $150 per month.
If the franchisee does not meet the Pre-Print Sales Requirement, Belocal has the option to issue a Business Improvement Plan. This plan will include specific strategies and metrics designed to help the franchisee improve their sales performance and meet the required targets. The purpose of the Business Improvement Plan is to guide the franchisee back to compliance with the sales requirements.
However, failure to successfully complete the Business Improvement Plan constitutes a default under the Franchise Agreement. This default can lead to the termination of the Franchise Agreement. Therefore, it is crucial for franchisees to adhere to the Pre-Print Sales Requirement and, if necessary, diligently follow and achieve the goals set out in any Business Improvement Plan provided by Belocal to avoid potential termination of their franchise agreement.