What happens if Belocal institutes a fee for managing a client in the future?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (v) If in the future we institute a fee for managing a client, for any print advertisement where you "manage" (as defined in our then-current Franchise Brand Standards Manual) a client who publishes a print advertisement in a publication managed by another franchisee, you will receive our then-current Managing Cross-Selling Fee (set forth in the preceding chart), divided by the number of Publications you manage; minus
- (vi) All other applicable fees and/or deductions applicable to you or the Publication, including, but not limited to: (1) extra copy orders fee; (2) late commission deductions; (3) design revision fee and adjustment fee; (4) missed deadline fee and late revisions fee; (5) Returnable Commissions (as defined below); (6) fees for services we or our affiliates provide, including any optional services you elect to receive from us or our affiliates; (7) cross-selling fees originating from your sales into publications managed by us or our affiliates or fees for Corporate Ads; (8) lead generation fees; (9) Administrative Credit Card Fees; and/or (10) Negative Commissions (as defined in the Franchise Agreement).
"Cash Received" means all revenue actually received by us or our affiliates from advertisers, recipients of the Publication, or other parties under the terms of advertising contracts or any other form of agreement or contract related to each issue of the Publication.
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if Belocal institutes a fee for managing a client in the future, a franchisee will receive a "Managing Cross-Selling Fee" if they manage a client who publishes a print advertisement in a publication managed by another franchisee. The amount of this fee will be Belocal's then-current Managing Cross-Selling Fee, divided by the number of publications the franchisee manages. The specific amount of this fee is not defined in this excerpt, but it is referenced as being set forth in a chart within Item 6.
This fee would be part of the commission calculation for each publication managed by the franchisee. The commission equals the total Cash Received for the publication in the applicable month, minus the Royalty for the publication, minus the Publication Expense, plus other potential cross-selling fees. The franchisee's commission will also be subject to other applicable fees and/or deductions, such as extra copy orders, late commission deductions, design revision fees, missed deadline fees, returnable commissions, fees for optional services, cross-selling fees, lead generation fees, administrative credit card fees, and/or negative commissions.
It is important to note that Belocal has the right to change the Cross-Selling Fee with no prior notice to the franchisee, unless otherwise required by law. Additionally, Belocal can terminate a franchisee's right to cross-sell or terminate the Franchise Agreement if the franchisee fails to comply with Belocal's policies, procedures, and guidelines related to cross-selling. A prospective franchisee should inquire about the typical range and calculation method for the Managing Cross-Selling Fee, as well as the specific conditions under which Belocal might modify or eliminate this fee.