What is the Belocal 'Receiving Cross-Selling Fee'?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
We have 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 for inclusion in the publication managed by the Receiving Franchisee.
- (ii) The Managing Franchisee 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.
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Receiving Cross-Selling Fee is a percentage of the monthly cash received for a print advertisement sold by another franchisee (the Selling Franchisee) that is included in the publication managed by the Receiving Franchisee. Currently, the Receiving Franchisee will receive 75% of the monthly Cash Received for that print advertisement, less the Royalty of 15% of the Cash Received and the Publication Expenses.
Belocal, however, retains the right to change how the Cross-Selling Fee is calculated. If they do so, the Receiving Franchisee would receive 60% of the monthly Cash Received for that print advertisement, less the Publication Expenses.
To be eligible to receive any Cross-Selling Fee, franchisees must comply with Belocal's policies, procedures, and guidelines related to cross-selling. Belocal also has the right to change the Cross-Selling Fee with no prior notice, unless otherwise required by law, and can terminate a franchisee's right to cross-sell or terminate the Franchise Agreement if a franchisee fails to comply with cross-selling policies.