factual

What was the order number associated with the State of Washington Department of Financial Institutions Securities Division action against Neighborhood Networks Publishing, Inc. regarding Belocal?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

In the Matter of Neighborhood Networks Publishing, Inc., State of Washington Department of Financial Institutions Securities Division, Order No. S-18-2456-18-CO01. On or about November 20, 2017, we applied for registration of our FDD for the offer and sale of our Real Producers Publications franchises. After cooperating with the state of Washington's requests for information relating to our affiliate's, Neighborhood Networks Publishing, Inc. (now known as The N2 Company), business activities, on November 5, 2018, the state of Washington determined that Neighborhood Networks Publishing, Inc. had offered and sold franchises in violation of the Washington Franchise Investment Protection Act before the date of our application. The state of Washington alleged that Neighborhood Networks Publishing, Inc. failed to provide prospective purchasers with disclosure documents and made financial performance representations in violation of Washington law. Neither we nor Neighborhood Networks Publishing, Inc. agrees with the state of Washington's findings, but in an effort to resolve the matter, in April 2019, Neighborhood Networks Publishing, Inc. entered into a Consent Order with the state of Washington. Under the Consent Order, Neighborhood Networks Publishing, Inc. agreed (1) to comply with the Washington Franchise Investment Protection Act, in all respects, (2) to cease and desist from violations of the Washington Franchise Investment Protection Act, and (3) to reimburse the state of Washington for its investigative costs in the amount of $4,000.

Source: Item 3 — LITIGATION (FDD page 13)

What This Means (2025 FDD)

According to Belocal's 2025 Franchise Disclosure Document, the order number associated with the State of Washington Department of Financial Institutions Securities Division action against Neighborhood Networks Publishing, Inc. is Order No. S-18-2456-18-CO01. This action occurred because the state of Washington determined that Neighborhood Networks Publishing, Inc. had offered and sold franchises in violation of the Washington Franchise Investment Protection Act before Belocal applied for registration of its FDD.

The state of Washington alleged that Neighborhood Networks Publishing, Inc. failed to provide prospective purchasers with disclosure documents and made financial performance representations in violation of Washington law. While neither Belocal nor Neighborhood Networks Publishing, Inc. agreed with the state of Washington's findings, Neighborhood Networks Publishing, Inc. entered into a Consent Order with the state to resolve the matter.

Under the Consent Order, Neighborhood Networks Publishing, Inc. agreed to comply with the Washington Franchise Investment Protection Act, cease and desist from violations of the Act, and reimburse the state of Washington $4,000 for its investigative costs. This information is important for prospective franchisees as it shows a past regulatory issue involving Belocal's affiliate and their efforts to resolve it.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.