What policies must the Belocal franchisee comply with regarding advertising?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. 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. Accordingly, Franchisor, its affiliates, and any other authorized person or entity shall, without limitation, have the right (1) to develop and establish other business systems (including systems that distribute products or services similar to those offered by the Franchised Business) using the Marks, or other names or marks, and to grant licenses to use those systems at any location without providing any rights to Franchisee; (2) to advertise and promote any N2 publications, N2 Co. businesses, and the businesses of Franchisor's franchisees, anywhere; (3) to operate, and license others to operate, any Franchised Business, N2 publication franchised businesses, or any business of any of Franchisor's affiliates, anywhere, including locations that are inside, adjacent to, or surrounded by Franchisee's Territory;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees must adhere to several advertising-related policies. Belocal franchisees are required to follow the franchisor's print and digital advertising policies, as well as the Franchise Brand Standards Manual. These policies dictate how franchisees can solicit advertising contracts, including the prices and terms they can offer, which must be set or approved by Belocal. Franchisees are permitted to solicit advertisers both inside and outside their territory, but must comply with Belocal's policies. Belocal retains the right to establish pricing requirements for advertising contracts and has ultimate discretion over whether to enter into any advertising contract. All advertising contracts must be between Belocal or its affiliate and the advertiser, not the franchisee.
Belocal also has the right to place corporate advertisements in the franchisee's publication, and the franchisee has no right to approve the content of these ads. While Belocal may pay the franchisee a commission for these corporate ads, the commission calculation can differ from standard commission calculations. Additionally, franchisees must comply with Belocal's policies regarding cross-selling into other N2 publications managed by Belocal or its affiliates.
Furthermore, franchisees must obtain Belocal's consent before establishing any online presence that mentions Belocal or its publications and must comply with Belocal's policies regarding online content. Franchisees are prohibited from posting derogatory or offensive content online and must ensure their staff does not do so either. Belocal retains ownership of all copyrights to material on any online presence. Finally, franchisees must comply with any policies regarding the use of artificial intelligence tools in their advertising and business operations, including obtaining prior consent before using such tools.