What is the Belocal 'Outgoing Cross-Selling Fee'?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) For purposes of our cross-selling program, the "Selling Franchisee" is the franchisee (or affiliate of ours) who sells print advertisements to be included in a publication managed by another franchisee (or affiliate of ours); the "Receiving Franchisee" is the franchisee (or affiliate of ours) who manages the publication within which the print advertisements will be published; and the "Managing Franchisee" is the franchisee who actively manages the relationship with the advertiser client. Currently, the Cross-Selling Fees are calculated as follows:
- (i) The Selling Franchisee will receive an Outgoing Cross-Selling Fee equal to 25% of the monthly Cash Received for each print advertisement sold by the Selling Franchisee that will be included in the publication managed by the Receiving Franchisee.
- (ii) The Receiving Franchisee will receive a Receiving Cross-Selling Fee equal to 75% of the monthly Cash Received for that print advertisement, less the Royalty of 15% of the Cash Received and the Publication Expenses.
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 Outgoing Cross-Selling Fee is a payment to the franchisee who sells print advertisements that are included in a publication managed by another Belocal franchisee. Currently, the Selling Franchisee receives 25% of the monthly Cash Received for each print advertisement they sell that will be included in another franchisee's publication. The Receiving Franchisee, who manages the publication, receives 75% of the monthly Cash Received for that advertisement, less a royalty of 15% of the Cash Received and the Publication Expenses.
Belocal retains the right to change how the Cross-Selling Fee is calculated. In the future, the Selling Franchisee could receive 10% of the monthly Cash Received, while a Managing Franchisee (if applicable) would receive 30% of the monthly Cash Received, less the 15% royalty. The Receiving Franchisee's share would then be 60% of the monthly Cash Received, less Publication Expenses.
It is important to note that to be eligible for any Cross-Selling Fee, franchisees must comply with Belocal's policies, procedures, and guidelines related to cross-selling. Belocal also has the right to change the Cross-Selling Fee without prior notice, unless otherwise required by law, and can terminate a franchisee's right to cross-sell or terminate the Franchise Agreement for non-compliance with cross-selling policies.