What is the look-back period for business advertiser interactions that trigger the non-solicitation clause after termination of a business relationship with a Belocal franchisee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
- E.
Post-term Non-solicitation.
For a period of two years after the termination, expiration, or transfer of this Agreement, regardless of the reason for such termination, expiration, or transfer, Franchisee and its Principal(s) shall not, solicit or attempt to solicit, using any form of oral, written, or electronic communications, any current or prospective business advertiser of Franchisor (or any of its affiliates) with whom Franchisee or any Principal interacted during the twelve-month period prior to the termination, expiration, or transfer of this Agreement, for the purpose of soliciting, offering, or accepting goods or services that are competitive with those offered by Franchisee, Franchisor, or any of Franchisor's affiliates.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the post-term non-solicitation clause is triggered by interactions with business advertisers within a specific look-back period. Specifically, for a period of two years after the termination, expiration, or transfer of the Franchise Agreement, the franchisee and their principals cannot solicit any current or prospective business advertiser of Belocal (or its affiliates). This restriction applies only to advertisers with whom the franchisee or principal interacted during the twelve-month period prior to the termination, expiration, or transfer of the agreement. The solicitation must be for the purpose of offering or accepting goods or services that compete with those offered by Belocal, the franchisee, or Belocal's affiliates.
In practical terms, this means that a Belocal franchisee must avoid soliciting any business advertisers they interacted with in the 12 months before their franchise ends. This restriction lasts for two years after the franchise termination. The non-solicitation clause is designed to protect Belocal's business interests by preventing former franchisees from leveraging their knowledge and relationships gained during the franchise term to unfairly compete with Belocal.
This provision is fairly standard in franchising, as franchisors typically want to protect their customer base and prevent franchisees from immediately using their established relationships to start a competing business. Franchisees should maintain careful records of their interactions with advertisers during the final year of operation to ensure compliance with this clause. Failure to comply could result in legal action by Belocal.