How is the Managing Cross-Selling Fee calculated for a Belocal franchisee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) For purposes of our cross-selling program, the "Selling Franchisee" is the franchisee (or affiliate of ours) who sells print advertisements to be included in a publication managed by another franchisee (or affiliate of ours); the "Receiving Franchisee" is the franchisee (or affiliate of ours) who manages the publication within which the print advertisements will be published; and the "Managing Franchisee" is the franchisee who actively manages the relationship with the advertiser client. 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.
We have 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 for inclusion in the publication managed by the Receiving Franchisee.
- (ii) The Managing Franchisee 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 sequal to 60% of the monthly Cash Received for that print advertisement, less the Publication Expenses.
You must comply with our then-current policies, procedures and guidelines related to cross-selling to be eligible to receive any Cross-Selling Fee. We have the right to change the Cross-Selling Fee with no prior notice to you unless otherwise required by law. We have the right to terminate your right to cross-sell or
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Managing Cross-Selling Fee is part of a potential future fee structure that Belocal may implement. Currently, this fee structure is not in effect. If Belocal implements this new structure, the Managing Franchisee would receive a fee equal to 30% of the monthly Cash Received for each print advertisement, less a royalty of 15% of the Cash Received. The Managing Franchisee is defined as the franchisee who actively manages the relationship with the advertiser client.
Under the potential new cross-selling fee structure, the Selling Franchisee would receive an Outgoing Cross-Selling Fee equal to 10% of the monthly Cash Received for each print advertisement they sell for inclusion in the publication managed by the Receiving Franchisee. 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.
Belocal retains the right to change the Cross-Selling Fee structure with no prior notice, unless otherwise required by law. Franchisees must comply with Belocal's policies, procedures, and guidelines related to cross-selling to be eligible to receive any Cross-Selling Fee. Failure to comply with these policies could result in termination of the franchisee's right to cross-sell or termination of the Franchise Agreement.
Currently, the cross-selling fee structure involves only the Selling Franchisee and the Receiving Franchisee. The Selling Franchisee receives 25% of the monthly Cash Received, while the Receiving Franchisee receives 75% of the monthly Cash Received, less the Royalty of 15% of the Cash Received and the Publication Expenses. The introduction of a Managing Cross-Selling Fee represents a potential shift in how cross-selling revenue is distributed among franchisees.