What is 'Hyport Digital' in relation to the Belocal franchise?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
N2 Co. also owns and operates a business selling digital marketing goods and services ("Hyport Digital").
The System also includes the systems for soliciting leads for and managing client relationships with Hyport Digital.
The Hyport Digital trademarks are included in the definition of "Marks." Franchisor desires to grant Franchisee the opportunity, but not the obligation, to solicit leads for and facilitate client relationships with Hyport Digital as part of the Franchised Business.
If Franchisee elects to solicit leads for and facilitate client relationships with Hyport Digital, Franchisee shall be entitled to receive the then-current "HD Sales Commission." The amount, due date, calculation, and other details of the HD Sales Commission are subject to change in Franchisor's sole discretion.
Franchisor may consider the following factors, among others, in establishing the HD Sales Commission: (1) the type of good or service Franchisee sells to the client, (2) the other goods and services the client purchases, (3) whether or not Franchisee referred the client to Hyport Digital, (4) the scope of the involvement of the Hyport Digital sales team, and (5) Franchisee's role in facilitating the relationship between the client and Hyport Digital.
The HD Sales Commission is due, as applicable, (i) only to the first franchisee that introduces a new prospective lead to Hyport Digital who has not already been a client of Hyport Digital during the previous 12-month period and (ii) only if the client unconditionally and completely pays for goods and services purchased from Hyport Digital.
Franchisor hereby grants Franchisee the conditional, non-exclusive right and license to, and Franchisee hereby accepts the right and option to solicit leads for and facilitate client relationships with Hyport Digital. Franchisee acknowledges and agrees that Franchisee may be required to complete and obtain certifications and training and meet other standards set forth in the Franchise Brand Standards Manual in order to qualify to conduct some or all of the foregoing activities. Franchisee acknowledges and agrees that the foregoing activities are optional and not required under the terms of this Agreement. Franchisee acknowledges and agrees that its opportunity to solicit leads for and facilitate client relationships with Hyport Digital is subject to all of the terms of this Agreement and standards in the Franchise Brand Standards Manual and is part of its operations of the Franchised Business. If Franchisee fails to comply with any requirements pertaining to Hyport Digital, including without limitation, its goods, services, clients, operations, and trademarks, Franchisee shall be in default under this Agreement. Franchisee's rights to solicit leads for and facilitate client relationships with Hyport Digital are conditioned upon Franchisor maintaining the Hyport Digital sales program. Franchisor has the right to modify and/or completely eliminate Franchisee's rights with respect to Hyport Digital in its sole discretion. The goods and services offered by Hyport Digital may be changed in Franchisor's affiliate's sole discretion.
At all times when Franchisee is promoting or soliciting the sale of Hyport Digital goods and services or interaction with Hyport Digital leads and clients, Franchisee shall conduct business in a manner that reflects favorably upon the Hyport Digital goods and services and upon the good name, goodwill, and reputation associated with the Marks, Franchisor, and Franchisor's affiliates.
- (8) Franchisee or any Principal (i) fails to interact with a lead or facilitate a client relationship with Hyport Digital in a professional manner or (ii) through act or omission, violates a policy or requirement of the Franchise Brand Standards Manual regarding the Hyport Digital leads, clients, goods, services, and trademarks;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Hyport Digital is a business owned and operated by N2 Co., an affiliate of the Belocal franchisor, that sells digital marketing goods and services. Belocal franchisees have the option, but not the obligation, to solicit leads and facilitate client relationships for Hyport Digital as part of their franchised business.
If a Belocal franchisee chooses to participate in the Hyport Digital sales program, they may need to complete certifications and training and meet other standards outlined in the Franchise Brand Standards Manual. The franchisee's right to solicit leads for Hyport Digital is conditional upon Belocal maintaining the Hyport Digital sales program, which Belocal can modify or eliminate at its sole discretion. All payments for Hyport Digital goods and services are directed to Belocal's affiliate, and franchisees must conduct business in a manner that reflects favorably on Hyport Digital and the Belocal brand.
Belocal franchisees who solicit leads for and facilitate client relationships with Hyport Digital are entitled to receive an "HD Sales Commission." The amount, due date, and calculation of this commission are subject to change at Belocal's discretion. Factors influencing the commission include the type of good or service sold, other client purchases, whether the franchisee referred the client, the Hyport Digital sales team's involvement, and the franchisee's role in facilitating the client relationship. The HD Sales Commission is paid only to the first franchisee who introduces a new lead that hasn't been a Hyport Digital client in the past 12 months, and only if the client fully pays for the goods and services.
Failure to comply with requirements pertaining to Hyport Digital, including those related to its goods, services, clients, operations, and trademarks, can result in the franchisee being in default under the Franchise Agreement. Franchisees must also interact with Hyport Digital leads and clients in a professional manner and adhere to all policies in the Franchise Brand Standards Manual. This arrangement allows Belocal to expand its service offerings through its franchisees, while also giving franchisees an additional revenue stream, although it is subject to Belocal's control and the franchisee's adherence to specific standards.