If a Belocal franchisee cross-sells print advertisements, is the Pre-print Commission a one-time payment?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
"Pre-print Commission" means a one-time payment equal to 10% of the total value of the contract with the advertiser for the purchase of print advertisements to be included in a publication managed by a Receiving Franchisee. If you cross-sell print advertising into a publication managed by another franchisee or our affiliate before the first issue of the Publication is published, then you may elect to receive a Pre-print Commission in lieu of the Outgoing Cross-Selling Fee. If you elect to receive a Pre-print Commission, we will pay you the Pre-print Commission within 20 days after the publication deadline of the publication in which the ad appears.
In addition to all requirements related to the printing of the first issue of the Publication and your compliance with the Franchise Agreement generally, payment of your first Commission is conditioned upon you having created a legal entity to be the franchisee and securing and producing evidence of all required insurance coverage.
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Pre-print Commission is indeed a one-time payment. This commission is applicable when a Belocal franchisee cross-sells print advertisements for inclusion in a publication managed either by another franchisee or by Belocal's affiliate.
Specifically, the Pre-print Commission is equivalent to 10% of the total contract value agreed upon with the advertiser for the print advertisements. This option is available to the franchisee as an alternative to receiving the Outgoing Cross-Selling Fee. Belocal will remit the Pre-print Commission to the franchisee within 20 days following the publication deadline of the issue in which the advertisement is featured.
However, the payment of the initial commission is contingent upon the franchisee having established a legal entity for their franchise and providing evidence of the necessary insurance coverage. This condition underscores the importance of fulfilling all legal and administrative requirements to ensure timely receipt of commissions from Belocal.