For Belocal, how is the Managing Cross-Selling Fee calculated for the Managing Franchisee, and what deductions are made from the monthly Cash Received for each print advertisement?

According to Belocal's 2025 Franchise Disclosure Document, the Managing Cross-Selling Fee is calculated as 30% of the monthly Cash Received for each print advertisement. However, this amount is subject to deductions. Specifically, the Royalty of 15% of the Cash Received is deducted from the 30% before the Managing Franchisee receives their fee.

In the context of Belocal's cross-selling program, the Managing Franchisee is the franchisee who actively manages the relationship with the advertiser client. This means they are responsible for maintaining the client relationship, and their compensation reflects this role. The 'Selling Franchisee' sells the ad, the 'Receiving Franchisee' manages the publication, and the 'Managing Franchisee' manages the client.

It's important to note that Belocal retains the right to change the Cross-Selling Fee structure with no prior notice, unless otherwise required by law. This means that the percentages and deductions could change, impacting the franchisee's potential earnings from cross-selling activities. Franchisees must comply with Belocal's policies and procedures related to cross-selling to be eligible for any Cross-Selling Fee. Failure to comply can result in termination of the right to cross-sell or even termination of the Franchise Agreement.