What happens if a Belocal franchisee fails to satisfy the Quarterly Qualified Sales requirement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. If Franchisee fails to satisfy any Quarterly Qualified Sales requirement, Franchisor may provide Franchisee with a Business Improvement Plan with metrics and strategies for Franchisee to improve its Quarterly Qualified Sales. Any failure by Franchisee to successfully complete any Business Improvement Plan shall constitute a default under this Agreement and shall be grounds for termination.
- (6) Franchisee must complete each content, review, approval, and publishing task for the Publication set forth in the Franchise Brand Standards Manual by the deadlines set by Franchisor, as each may change from time to time.
- (7) Distribute the Publication to all residents in Franchisee's Territory, as set forth in the mailing list provided by Franchisor ("Mailing List"), and all Publication advertisers, unless otherwise approved in writing. In the event Franchisee believes that the Mailing List should be adjusted, Franchisee may request such adjustments be made by Franchisor. Franchisor shall have sole discretion to approve or deny any adjustments requested by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a franchisee fails to meet the minimum number of Qualified Sales for each Publication they manage within a Quarter, Belocal may provide the franchisee with a Business Improvement Plan. This plan will include metrics and strategies designed to help the franchisee improve their sales performance. A 'Quarter' is defined as a three-month period, starting on January 1, April 1, July 1, and October 1. Belocal retains the discretion to modify the definition of 'Qualified Sales,' the minimum number of Qualified Sales required, and any Quarter-related requirements during the term of the agreement.
It's important to note that the Business Improvement Plan is not merely a suggestion. If the Belocal franchisee fails to successfully complete the Business Improvement Plan, it constitutes a default under the Franchise Agreement. This failure can then be used as grounds for termination of the franchise agreement. This highlights the importance of meeting the sales goals set by Belocal and diligently following the improvement plan if sales targets are not initially met.
This requirement underscores the importance of sales performance in maintaining a Belocal franchise. Prospective franchisees should carefully consider their ability to meet the defined sales quotas and their willingness to implement improvement strategies if necessary. They should also inquire about the specific metrics and strategies that are typically included in a Business Improvement Plan to fully understand the expectations and potential consequences of failing to meet the Quarterly Qualified Sales requirements.