If a Belocal franchisee sells advertising to a Strategic Partner, must they comply with pricing arrangements?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
We, our affiliates, or our other franchisees may, from time to time in our sole discretion, solicit, seek to establish, or establish one or more national or regional accounts with prospective advertisers and advertisers that may be located in, or have offices, branches, or some other presence, in your Territory ("Strategic Partners"). You have no right to solicit or sell advertising to a Strategic Partner, but we may, in our discretion, establish a policy allowing you to do so, and we may change such policy in our discretion at any time. If you attempt to sell advertising to a Strategic Partner, you must strictly comply with all of our requirements relating to such relationships, including honoring any pricing arrangement agreed to between us and such Strategic Partner. We reserve the right to designate, at any time, any advertiser as a Strategic Partner, including but not limited to those to whom you have already sold advertising.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees must adhere to specific requirements, including pricing, if they are permitted to sell advertising to Strategic Partners. Belocal, its affiliates, or other franchisees may solicit national or regional accounts with advertisers located within a franchisee's territory, which are designated as "Strategic Partners."
While franchisees generally do not have the right to solicit or sell to Strategic Partners, Belocal may, at its discretion, allow them to do so. However, if a Belocal franchisee attempts to sell advertising to a Strategic Partner, they must strictly comply with all requirements set by Belocal, including honoring any pricing arrangements already agreed upon between Belocal and the Strategic Partner.
Belocal retains the right to designate any advertiser as a Strategic Partner at any time, even those to whom a franchisee has already sold advertising. This policy ensures that Belocal maintains control over key national and regional accounts and that pricing is consistent across the Belocal system, but it also means that a Belocal franchisee's sales efforts and revenue could be subject to change based on Belocal's decisions regarding Strategic Partners.