How is the Receiving Cross-Selling Fee calculated for a Belocal franchisee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) For purposes of our cross-selling program, the "Selling Franchisee" is the franchisee (or affiliate of ours) who sells print advertisements to be included in a publication managed by another franchisee (or affiliate of ours); the "Receiving Franchisee" is the franchisee (or affiliate of ours) who manages the publication within which the print advertisements will be published; and the "Managing Franchisee" is the franchisee who actively manages the relationship with the advertiser client. Currently, the Cross-Selling Fees are calculated as follows:
- (i) The Selling Franchisee will receive an Outgoing Cross-Selling Fee equal to 25% of the monthly Cash Received for each print advertisement sold by the Selling Franchisee that will be included in the publication managed by the Receiving Franchisee.
- (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.
- (iii) The Receiving Franchisee would receive a Receiving Cross-Selling Fee sequal to 60% of the monthly Cash Received for that print advertisement, less the Publication Expenses.
You must comply with our then-current policies, procedures and guidelines related to cross-selling to be eligible to receive any Cross-Selling Fee. We have the right to change the Cross-Selling Fee with no prior notice to you unless otherwise required by law. We have the right to terminate your right to cross-sell or
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 part of Belocal's cross-selling program, where franchisees can sell print advertisements to be included in publications managed by other franchisees. The Receiving Franchisee is the franchisee who manages the publication in which the print advertisements are published. Currently, 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.
Belocal retains the right to change how the Cross-Selling Fee is calculated. If changed, the Receiving Franchisee would receive a Receiving Cross-Selling Fee equal to 60% of the monthly Cash Received for that print advertisement, less the Publication Expenses.
To be eligible for any Cross-Selling Fee, franchisees must comply with Belocal's policies, procedures, and guidelines related to cross-selling. Belocal 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.