On what page of the Belocal Franchise Agreement can I find information about the grant of the franchise?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
AGREEMENT
1. GRANT
- A.
Grant of Rights.
Franchisor hereby grants Franchisee the non-exclusive right and license, and Franchisee hereby accepts the right and obligation, to establish and operate the Franchised Business.
Franchisee acknowledges and agrees that this Agreement grants Franchisee the right to operate only the Franchised Business and to distribute the Publication only within the Territory set forth in Attachment B.
Franchisee has no right to distribute the Publication to any person, Community, or Industry Group outside of Franchisee's Territory.
Franchisee has the right to solicit advertisers inside or outside of its Territory to sell print advertisements that would be included in the Publication or in other N2 publications and the associated digital advertising services, but subject to the limitations set forth in this Agreement and only in compliance with Franchisor's then-current digital advertising policies, cross-selling policies, and the Franchise Brand Standards Manual.
Franchisee must at all times comply with Franchisor's then-current print advertising policies, digital advertising policies, and the Franchise Brand Standards Manual.
Franchisor also has the right to require Franchisee to sell packages of advertising goods and services, which may include print and digital components.
Notwithstanding anything in this Agreement to the contrary, Franchisor has the right to restrict Franchisee from offering or selling advertisements in any form to any client or prospective client at any time.
Franchisor has the right to allow other franchisees, affiliates of Franchisor, or any other party Franchisor deems appropriate to offer and sell advertising in any forms to clients located in Franchisee's Territory, without any liability to Franchisee.
Franchisee shall obtain Franchisor's prior written consent before organizing an event that occurs more than 25 miles from Franchisee's Territory.
- B.
Reserved Rights.
The rights granted to Franchisee under this Agreement are nonexclusive, and Franchisee is not granted any territorial rights or other protection.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the grant of rights for the franchise is detailed on page 108 of the Franchise Agreement. Specifically, Section 1.A, titled "Grant of Rights," outlines the non-exclusive right and license that Belocal grants to the franchisee to establish and operate the franchised business. It also states that the franchisee accepts the right and obligation to do so.
This section clarifies that the agreement allows the franchisee to operate only the franchised business and distribute the publication within the territory defined in Attachment B. The franchisee does not have the right to distribute the publication outside of their designated territory. However, the franchisee can solicit advertisers both inside and outside their territory for print advertisements in the publication and associated digital advertising services, provided they comply with Belocal's current digital advertising policies, cross-selling policies, and the Franchise Brand Standards Manual.
Belocal also retains certain rights, including the ability to require franchisees to sell packages of advertising goods and services that may include print and digital components. Furthermore, Belocal has the right to restrict franchisees from offering or selling advertisements to any client or prospective client at any time and can allow other franchisees or affiliates to sell advertising in the franchisee's territory without any liability. Franchisees must obtain prior written consent from Belocal before organizing an event more than 25 miles from their territory.
Section 1.B, "Reserved Rights," emphasizes that the rights granted to the franchisee are nonexclusive, and the franchisee does not receive any territorial rights or other protection. This means that Belocal can grant similar rights to other franchisees or operate its own business within the same area, which is a common practice in franchising but something potential franchisees should carefully consider.