What is the required action for a Belocal franchisee to maintain the right to cross-sell?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, if Franchisee sells print advertising for a publication that is the responsibility of another franchisee, then Franchisee shall be eligible to receive Franchisor's then-current Outgoing Cross-Selling Fee for such sale(s), as set forth in the Franchise Brand Standards Manual, provided Franchisee complies with Franchisor's then-current policies, procedures, and guidelines related to cross-selling. Franchisor shall have the right to terminate Franchisee's right to cross-sell or this Agreement if Franchisee fails to comply with Franchisor's policies, procedures, and guidelines related to cross-selling.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee must comply with Belocal's policies, procedures, and guidelines related to cross-selling to maintain the right to cross-sell. Belocal retains the right to terminate a franchisee's cross-selling privileges if the franchisee fails to adhere to these guidelines.
Cross-selling involves a franchisee selling print advertising for a publication managed by another franchisee. In such cases, the selling franchisee may receive an Outgoing Cross-Selling Fee, and the franchisee whose publication is used may receive a Receiving Cross-Selling Fee. The specific percentages for these fees are subject to change by Belocal.
This condition highlights the importance of franchisees staying informed about and compliant with Belocal's operational standards, as failure to do so can directly impact their ability to generate revenue through cross-selling activities. Prospective franchisees should carefully review the Franchise Brand Standards Manual and any updates to cross-selling policies to ensure they understand and can meet these requirements.