What policies govern a Belocal franchisee's ability to sell digital advertising services outside their territory?

According to Belocal's 2025 Franchise Disclosure Document, franchisees have the right to sell digital advertising services to clients located both inside and outside of their territory. However, this right is explicitly governed by Belocal's "then-current digital advertising policies, cross-selling policies and Franchise Brand Standards Manual." This means that while franchisees aren't strictly limited to their territory for digital ad sales, they must adhere to specific guidelines set by Belocal.

This policy has several implications for prospective franchisees. First, it provides an opportunity to expand their customer base beyond their immediate geographic area, potentially increasing revenue. However, it also introduces the risk of non-compliance if the franchisee fails to follow the prescribed policies and standards. It is crucial for franchisees to thoroughly understand and adhere to these policies to avoid any breach of the franchise agreement.

Furthermore, Belocal retains the right to modify these policies and standards, meaning that franchisees must stay updated on any changes that may affect their ability to sell digital advertising services outside their territory. The FDD also states that Belocal has the right to allow other franchisees or affiliates to offer and sell advertising in all forms to clients located in a franchisee's territory. This highlights the non-exclusive nature of the territory and the potential for competition from within the Belocal franchise system itself.

In addition to Belocal's own policies, franchisees may also solicit leads for Hyport Digital, an affiliate of Belocal, and receive a commission on referrals. There are no restrictions on where franchisees may solicit leads for Hyport Digital or restrictions on the location of the clients for which they facilitate the relationship with Hyport Digital. However, this opportunity is conditioned on the continuance of the sales program, which Belocal may modify and discontinue at its sole discretion. Belocal may also require franchisees to complete certain training and certifications in order to qualify to facilitate a client's relationship with Hyport Digital.