What is the 'Managing Cross-Selling Fee' for a Belocal franchisee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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 equal to 30% of the monthly Cash Received for each print advertisement, less the Royalty of 15% of the Cash Received. This fee is applicable when a Belocal franchisee actively manages the relationship with the advertiser client in a cross-selling arrangement.
In this cross-selling program, different franchisees play different roles: the 'Selling Franchisee' sells the print advertisement, the 'Receiving Franchisee' manages the publication where the ad is placed, and the 'Managing Franchisee' manages the client relationship. The Managing Cross-Selling Fee compensates the franchisee who handles the client relationship in this scenario.
Belocal retains the right to change the Cross-Selling Fee structure with no prior notice, unless otherwise required by law. This means the 30% figure could be subject to change, impacting the franchisee's potential earnings from managing client relationships in cross-selling scenarios. Prospective franchisees should consider this potential variability when evaluating the financial aspects of the franchise opportunity.
It's important for franchisees to comply with Belocal's policies, procedures, and guidelines related to cross-selling to be eligible for any Cross-Selling Fee. Failure to comply could result in the termination of the franchisee's right to cross-sell or even the termination of the Franchise Agreement.