What is the nature of the relationship between N2 and the Belocal franchisee?

T

THIS FRANCHISE AGREEMENT ("Agreement") is entered into by and between N2 Franchising, Inc., a Delaware corporation ("Franchisor"), and [name of franchisee entity], a [name of state where entity is filed and type of entity or an individual] ("Franchisee"), and shall be effective on the date signed by Franchisor ("Effective Date"). Capitalized terms used in this Agreement are defined in Attachment A, hereto, unless otherwise defined herein.

RECITALS

• A. Franchisor's affiliate, The N2 Company ("N2 Co."), operates a business that sells marketing services; creates and sells print and digital advertising; and owns and publishes magazines, newsletters, and/or directories ("publications") for the residents and visitors of neighborhoods, cities, towns, villages, and other residential communities ("Communities") and for members of specific commercial or professional industries or groups and specific retail or special interest groups ("Industry Groups").
• B. Franchisor has the right to use and license the use of a system ("System") for the establishment and operation of franchised businesses that sell print advertising to businesses that wish to advertise in one or more print publications; that facilitate the publishing of publications; that sell digital advertising services; that organize local events; that solicit and compile content for the publications; and that develop relationships among residents of Communities and members of Industry Groups, all under the Marks (as defined below) ("Franchised Business"). The System is identified by certain trade names, service marks, trademarks, logos, emblems, and indicia of origin, including, but not limited to, the trademark(s) set forth in Attachment B and such other trade names, service marks, trademarks, logos, emblems, and indicia of origin as are now designated, and may hereafter be designated by Franchisor in writing, for use in connection with the System ("Marks"). Franchisor licenses to others the right to manage publications under various brand names and systems, and such publications are collectively referred to herein as "N2 publications." Any publication managed by Franchisor's affiliates is also an "N2 publication."
• C. The distinguishing characteristics of the System include, without limitation, specifications, policies and procedures for operations; quality of the products and services offered; procedures for sales, management, and financial control; customer service; training and assistance; and advertising and promotional programs, all of which may be changed, improved, and further developed by Franchisor from time to time.
• D. Franchisee wishes to obtain the right to establish and operate a Franchised Business whereby Franchisee will sell print advertising, solicit and compile content, and facilitate the publishing of a print publication ("Publication") to be distributed within the non-exclusive geographic area identified in Attachment B to this Agreement ("Territory"), using the Marks and the System.
• E. N2 Co. also owns and operates a business selling digital marketing goods and services ("Hyport Digital").

Source: Item 22 — CONTRACTS (FDD page 71)