If a Belocal franchisee sells print advertising for another franchisee's publication, are they eligible for the Outgoing Cross-Selling Fee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees and acknowledges that any Selling Franchisee that sells print advertising for the Publication shall be entitled to receive Franchisor's then-current Outgoing Cross-Selling Fee, and Franchisee shall be entitled to receive Franchisor's then-current Receiving Cross-Selling Fee. Further, if Franchisee sells print advertising for a publication that is the responsibility of another franchisee, then Franchisee shall be eligible to receive Franchisor's then-current Outgoing Cross-Selling Fee for such sale(s), as set forth in the Franchise Brand Standards Manual, provided Franchisee complies with Franchisor's then-current policies, procedures, and guidelines related to cross-selling. Franchisor shall have the right to terminate Franchisee's right to cross-sell or this Agreement if Franchisee fails to comply with Franchisor's policies, procedures, and guidelines related to cross-selling. Currently, the Cross-Selling Fees are calculated as follows:
- (i) The Selling Franchisee will receive an Outgoing Cross-Selling Fee equal to 25% of the monthly Cash Received for each print advertisement sold by the Selling Franchisee that will be included in the publication managed by the Receiving Franchisee.
- (ii) The Receiving Franchisee will receive a Receiving Cross-Selling Fee equal to 75% of the monthly Cash Received for that print advertisement, less the Royalty of 15% of the Cash Received and the Publication Expenses.
Any time during the Term of this Agreement, with no prior notices unless otherwise required by law, Franchisor reserves the right to change the Cross-Selling Fee to be calculated as follows:
- (i) The Selling Franchisee would receive an Outgoing Cross-Selling Fee equal to 10% of the monthly Cash Received for each print advertisement sold by the Selling Franchisee that will be included in the publication managed by the Receiving Franchisee.
- (ii) The Managing Franchisee (as defined by Franchisor's then-current Franchise Brand Standards Manual) would receive a Managing Cross-Selling Fee equal to 30% of the monthly Cash Received for each print advertisement, less the Royalty of 15% of the Cash Received.
- (iii) The Receiving Franchisee would receive a Receiving Cross-Selling Fee equal to 60% of the monthly Cash Received for that print advertisement, less the Publication Expenses.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee is eligible to receive the Outgoing Cross-Selling Fee if they sell print advertising for a publication that is the responsibility of another franchisee. To be eligible, the franchisee must comply with Belocal's policies, procedures, and guidelines related to cross-selling, as outlined in the Franchise Brand Standards Manual. Belocal retains the right to terminate a franchisee's cross-selling privileges if they fail to adhere to these policies.
Currently, the Outgoing Cross-Selling Fee is 25% of the monthly cash received for each print advertisement sold by the selling franchisee that will be included in the publication managed by the receiving franchisee. The receiving franchisee gets 75% of the monthly cash received for that print advertisement, less the royalty of 15% of the cash received and the publication expenses.
Belocal reserves the right to change the cross-selling fee structure, potentially altering the percentages received by the selling and receiving franchisees. In the future, the selling franchisee could receive 10% of the monthly cash received, the managing franchisee could receive 30% less the 15% royalty, and the receiving franchisee could receive 60% less publication expenses. These changes can be made at any time during the agreement term without prior notice, unless otherwise required by law.