If a Belocal franchisee elects to use optional services, what must they do?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) Subject to the terms of this Agreement and the policies and requirements of the Franchise Brand Standards Manual, and at Franchisee's option, solicit leads for and facilitate client relationships with Hyport Digital.
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.
At all times, all payments for Hyport Digital goods and services shall be directed to Franchisor's affiliate.
Neither Franchisee nor any of its Independent Staff shall directly or indirectly (i) make any representations on behalf of Franchisor's affiliate or Franchisor or with respect to the Hyport Digital goods and services, except such as are expressly authorized by Franchisor's affiliate or Franchisor or are set forth in their authorized sales materials or (ii) engage in any unfair, misleading, or deceptive practices with respect to the Hyport Digital goods and services.
- (9) Subject to the terms of this Agreement and the policies and requirements of the Franchise Brand Standards Manual, organize local events for advertisers and, as applicable, members of Communities and/or members of Industry Groups.
Franchisor has the right to implement a royalty on revenue generated from these events, which Franchisor can implement and subsequently change upon ninety (90) days' notice to Franchisee.
Franchisee agrees to use the credit card processing platform that Franchisor designates to collect payments by credit card from sponsors or other participants in the event.
Franchisee agrees to pay Franchisor's or its affiliate's then-current credit card fee on such payments.
This fee may include the credit card transaction fees and a reasonable fee for Franchisor's or its affiliate's involvement with the administration of the payment platform.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a franchisee chooses to solicit leads and facilitate client relationships with Hyport Digital, which is optional, they must conduct business in a manner that reflects favorably on Hyport Digital's goods and services, as well as the reputation and goodwill associated with Belocal's marks, the franchisor, and its affiliates.
Furthermore, all payments for Hyport Digital's goods and services must be directed to Belocal's affiliate. The franchisee and their staff are prohibited from making representations on behalf of Belocal's affiliate or Belocal itself regarding Hyport Digital's goods and services, unless expressly authorized or included in approved sales materials. They must also avoid engaging in any unfair, misleading, or deceptive practices related to Hyport Digital's offerings.
Additionally, Belocal franchisees have the option to organize local events for advertisers and members of communities or industry groups. Belocal retains the right to implement a royalty on revenue generated from these events, with a 90-day notice period before implementation or changes. Franchisees are required to use Belocal's designated credit card processing platform for collecting payments from event sponsors or participants and must pay Belocal's or its affiliate's then-current credit card fee on such payments, which may include transaction fees and an administrative fee for Belocal's involvement with the payment platform.