Does the Belocal 'Restricted Territory' include a ten-mile radius around the perimeter of any publication business owned by Belocal, its affiliates, or its franchisees?

According to Belocal's 2025 Franchise Disclosure Document, the Restricted Territory does include a ten-mile radius around the perimeter of any publication business owned by Belocal, its affiliates, or its franchisees. This is subject to potential modification by a court of law or arbitrator if deemed too broad. The agreement specifies that the Restricted Territory initially encompasses the territories of, and a ten-mile radius around the perimeter of the territory of, any publication business owned by Belocal, its affiliates, or its franchisees, including the franchisee's own territory.

However, this initial definition is not absolute. If a court or arbitrator determines that this scope is too broad, the Restricted Territory may be reduced. The document outlines a tiered approach, where the territory could be limited to just the territories of any publication business owned by Belocal, its affiliates, or its franchisees, including the franchisee's territory. Further reductions could limit the territory to a ten-mile radius around the perimeter of the franchisee's territory plus the franchisee's territory itself, or ultimately, just the franchisee's territory.

This tiered definition of the Restricted Territory means that a Belocal franchisee's non-compete obligations could vary depending on legal interpretations. Initially, the franchisee is restricted from operating a competitive business within a potentially larger area that includes a ten-mile buffer around other Belocal-related publications. However, if challenged, this restriction could be narrowed, potentially allowing the franchisee more freedom to operate a competing business closer to other Belocal entities or even within their own territory under the most limited interpretation. Prospective franchisees should seek legal counsel to understand the potential implications of these clauses and how they might affect their business operations after the franchise agreement ends.