What is Belocal's reliance for granting the franchise to the franchisee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- A.
Grant of Rights.
Franchisor hereby grants Franchisee the non-exclusive right and license, and Franchisee hereby accepts the right and obligation, to establish and operate the Franchised Business.
Franchisee acknowledges and agrees that this Agreement grants Franchisee the right to operate only the Franchised Business and to distribute the Publication only within the Territory set forth in Attachment B.
Franchisee has no right to distribute the Publication to any person, Community, or Industry Group outside of Franchisee's Territory.
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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the grant of rights to a franchisee is based on a non-exclusive right and license to establish and operate the franchised business. Belocal grants the franchisee the right to operate the franchised business and distribute the publication within a specific territory outlined in Attachment B of the franchise agreement. The franchisee is obligated to accept this right.
Belocal specifies that the franchisee does not have the right to distribute the publication outside of their designated territory. However, the franchisee can solicit advertisers both inside and outside their territory to sell print advertisements for inclusion in the publication or other N2 publications, as well as associated digital advertising services. This is subject to the limitations outlined in the agreement and compliance with Belocal's current digital advertising policies, cross-selling policies, and the Franchise Brand Standards Manual.
Belocal retains significant rights, including the right to require franchisees to sell packages of advertising goods and services that may include both print and digital components. Furthermore, Belocal can restrict a franchisee from offering or selling advertisements to any client or prospective client at any time. Belocal also reserves the right to allow other franchisees, affiliates, or any other party it deems appropriate to sell advertising to clients within the franchisee's territory without any liability to the franchisee. The franchisee must obtain prior written consent from Belocal before organizing any event that occurs more than 25 miles from their territory.
It is important to note that the rights granted to the franchisee are non-exclusive, and the franchisee does not receive any territorial rights or protection. This means Belocal, its affiliates, and other authorized entities can develop other business systems, advertise N2 publications, and operate or license others to operate similar businesses, even within the franchisee's territory. Belocal also has the discretion to change a franchisee's territory with ninety days' notice.