Can Belocal require the franchisee to sell packages of advertising goods and services?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. 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, Belocal has the right to require franchisees to sell packages of advertising goods and services. These packages may include both print and digital components. This means that Belocal can mandate that franchisees offer and sell specific combinations of advertising products, potentially impacting the franchisee's sales strategy.
Belocal also retains significant control over advertising sales within the franchise system. Franchisees have the right to solicit advertisers inside or outside their 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. However, Belocal can restrict franchisees from offering or selling advertisements to any client or prospective client at any time. Additionally, Belocal can allow other franchisees, affiliates, or any party it deems appropriate to sell advertising in a franchisee's territory without any liability to the franchisee.
These stipulations highlight the importance of understanding Belocal's advertising policies and standards, as well as the potential for Belocal to modify sales strategies and client relationships within the franchise network. Prospective franchisees should carefully review the Franchise Brand Standards Manual and discuss Belocal's advertising policies to fully understand the scope of these requirements and restrictions.