What is the Outgoing Cross-Selling Fee that a Belocal Selling Franchisee receives?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Cross-Selling Fees. Franchisee agrees and acknowledges that any Selling Franchisee that sells print advertising for the Publication shall be entitled to receive Franchisor's then-current Outgoing Cross-Selling Fee, and Franchisee shall be entitled to receive Franchisor's then-current Receiving Cross-Selling Fee. Further, if Franchisee sells print advertising for a publication that is the responsibility of another franchisee, then Franchisee shall be eligible to receive Franchisor's then-current Outgoing Cross-Selling Fee for such sale(s), as set forth in the Franchise Brand Standards Manual, provided Franchisee complies with Franchisor's then-current policies, procedures, and guidelines related to cross-selling. Franchisor shall have the right to terminate Franchisee's right to cross-sell or this Agreement if Franchisee fails to comply with Franchisor's policies, procedures, and guidelines related to cross-selling. 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.
Any time during the Term of this Agreement, with no prior notices unless otherwise required by law, Franchisor reserves 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 that will be included in the publication managed by the Receiving Franchisee.
- (ii) The Managing Franchisee (as defined by Franchisor's then-current Franchise Brand Standards Manual) 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 equal to 60% of the monthly Cash Received for that print advertisement, less the Publication Expenses.
Notwithstanding the foregoing or anything to the contrary herein, in the event an advertiser on a cross-sold account (i) is permitted by Franchisor to terminate its Advertising Contract with Franchisor prior to the end of the term of such Advertising Contract and (ii) pays an early termination fee ("Early Termination Fee") in connection with such early termination, each of the Selling Franchisee and the Receiving Franchisee shall receive 50% of such Early Termination Fee.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a Selling Franchisee can receive an Outgoing Cross-Selling Fee for selling print advertisements that will be included in a publication managed by a Receiving Franchisee. Currently, the Selling Franchisee will receive 25% of the monthly Cash Received for each print advertisement sold.
However, Belocal retains the right to change the Cross-Selling Fee structure. If changed, the Selling Franchisee would receive 10% of the monthly Cash Received for each print advertisement sold that will be included in the publication managed by the Receiving Franchisee. In this scenario, a Managing Cross-Selling Fee would also be introduced, equal to 30% of the monthly Cash Received for each print advertisement, less the Royalty of 15% of the Cash Received.
Additionally, if an advertiser terminates their contract early and pays an early termination fee, both the Selling Franchisee and the Receiving Franchisee will each receive 50% of that Early Termination Fee. A Belocal franchisee should be aware that these fees and commission structures are subject to change by Belocal.