What are the limitations on the Belocal franchisee's right to solicit advertisers outside of their territory?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. Franchisee has the right to solicit advertisers inside or outside of its Territory to sell print advertisements that would be included in the Publication or in other N2 publications and the associated digital advertising services, but subject to the limitations set forth in this Agreement and only in compliance with Franchisor's then-current digital advertising policies, cross-selling policies, and the Franchise Brand Standards Manual. Franchisee must at all times comply with Franchisor's then-current print advertising policies, digital advertising policies, and the Franchise Brand Standards Manual. Franchisor also has the right to require Franchisee to sell packages of advertising goods and services, which may include print and digital components. Notwithstanding anything in this Agreement to the contrary, Franchisor has the right to restrict Franchisee from offering or selling advertisements in any form to any client or prospective client at any time. Franchisor has the right to allow other franchisees, affiliates of Franchisor, or any other party Franchisor deems appropriate to offer and sell advertising in any forms to clients located in Franchisee's Territory, without any liability to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees have the right to solicit advertisers both inside and outside their territory for print advertisements in Belocal and other N2 publications, as well as associated digital advertising services. However, this right is subject to several limitations outlined in the Franchise Agreement. Franchisees must adhere to Belocal's current digital advertising policies, cross-selling policies, and the Franchise Brand Standards Manual. Belocal also retains the right to mandate that franchisees sell bundled advertising packages that include both print and digital components.
Belocal maintains significant control over advertising sales, reserving the right to restrict franchisees from offering or selling advertisements to any client or prospective client at any time. Furthermore, Belocal can allow other franchisees, its affiliates, or any other party it deems appropriate to sell advertising within a franchisee's territory without incurring any liability to the franchisee. This means that while franchisees can solicit advertisers outside their territory, Belocal can limit or override these efforts.
Additionally, franchisees must obtain prior written consent from Belocal before organizing any event that takes place more than 25 miles outside their territory. These provisions highlight that while franchisees have some rights to solicit advertising outside their territory, Belocal retains considerable control over advertising sales and territorial rights, which could impact a franchisee's business operations and revenue potential.