What quarterly sales requirements must a Belocal franchisee meet for each Publication they manage?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) For each Quarter, and for each Publication that Franchisee manages, Franchisee must complete the minimum number of Qualified Sales, as prescribed in the Franchise Brand Standards Manual.
Franchisor may change the definition of Qualified Sales, the minimum number of Qualified Sales, and Quarter-related requirements at any time during the Term of this Agreement, in its discretion.
A "Quarter" is a three-month period during a year.
A new Quarter begins January 1, April 1, July 1, and October 1 of each year.
If Franchisee fails to satisfy any Quarterly Qualified Sales requirement, Franchisor may provide Franchisee with a Business Improvement Plan with metrics and strategies for Franchisee to improve its Quarterly Qualified Sales.
Any failure by Franchisee to successfully complete any Business Improvement Plan shall constitute a default under this Agreement and shall be grounds for termination.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, for each quarter and for each publication managed, a franchisee must complete the minimum number of Qualified Sales as prescribed in the Franchise Brand Standards Manual. A 'Quarter' is defined as a three-month period, specifically beginning on January 1, April 1, July 1, and October 1 of each year. The definition of 'Qualified Sales' is found in the Franchise Brand Standards Manual.
Belocal retains the discretion to modify the definition of 'Qualified Sales,' the minimum number of Qualified Sales required, and any quarter-related requirements at any point during the franchise agreement term. This means that the sales targets and the way sales are qualified can change, potentially impacting a franchisee's ability to meet the requirements.
If a Belocal franchisee fails to meet the quarterly Qualified Sales requirement, Belocal may provide a Business Improvement Plan that includes metrics and strategies to help the franchisee improve their sales performance. Failure to successfully complete the Business Improvement Plan constitutes a default under the Franchise Agreement and can lead to termination. This highlights the importance of consistently meeting sales targets and the potential consequences of not doing so.
Prospective Belocal franchisees should carefully review the Franchise Brand Standards Manual to understand the current definition of 'Qualified Sales' and the minimum sales numbers required. They should also consider the risk that these requirements could change during the term of their agreement and the potential impact on their business.