What is the meaning of 'affiliate' as used in the Belocal Franchise Disclosure Document?

According to Belocal's 2025 Franchise Disclosure Document, an 'affiliate' is defined in relation to a specific person or entity. The term encompasses any person or entity that either controls, is controlled by, or is under common control with the named person. This definition also explicitly includes the parents and subsidiaries of the named person. This definition is important because the actions of an affiliate can have legal and financial implications for Belocal and its franchisees.

For a prospective Belocal franchisee, understanding this definition is crucial because it clarifies the scope of relationships that could impact their franchise operation. For example, if Belocal has a parent company, that parent company's actions could affect the franchise. Similarly, any subsidiaries of Belocal could also have an impact. This broad definition ensures that all entities closely tied to Belocal are considered when evaluating potential conflicts of interest or business opportunities.

Furthermore, the FDD indicates that franchisees may interact with Belocal's affiliate, The N2 Company, which owns and publishes the publications for which franchisees sell advertising. The N2 Company also operates businesses similar to the franchises it offers and provides digital advertising services. Understanding the relationship between Belocal and its affiliates helps franchisees navigate potential collaborations, service agreements, and competitive dynamics within the Belocal system. Franchisees should carefully consider these relationships and how they might affect their business operations and revenue streams.