What right does Belocal grant to the franchisee regarding the territory?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Y
You will not receive an exclusive territory. You may face competition from other franchisees, from businesses owned by us or our affiliates, or from other channels of distribution or competitive brands that we control.
When you sign the Franchise Agreement, we will grant you the non-exclusive right and license to establish and operate the Franchised Business. You will be granted a non-exclusive geographic area ("Territory") described in Attachment B to the Franchise Agreement, within which you have the right to distribute the Publication. We do not allow you to relocate your Territory. You will not have the right to distribute the Publication to any person, community, or industry group outside of your Territory. You have the right to sell and offer to sell print advertising and digital advertising services to clients located both inside and outside of your Territory, but only in accordance with our then-current digital advertising policies, crossselling policies and Franchise Brand Standards Manual. We also have the right to allow other franchisees or affiliates to offer and sell advertising in all forms to clients located in your Territory.
Your Territory will be defined by geographic boundaries or descriptions we select. We do not grant any minimum territory. The actual size of the Territory will vary depending upon the availability of markets, our long-range plans, your financial and operational resources, and market conditions. A written description of the Territory will be inserted in Attachment B to the Franchise Agreement before you sign the Franchise Agreement. The boundaries used to define the Territory will be geographic boundaries as configured on the effective date of the Franchise Agreement, which may be described as certain neighborhoods, subdivisions, or communities, or a specific home count in an area, as determined by us. We have the sole discretion to change your Territory, including its size, shape, boundaries, and population, upon ninety (90) days' notice to you.
We divide each calendar year into four periods of three months each, and we call these periods "Quarters." For the Publication, we require you to (1) maintain a minimum, monthly Commission for the term of your Franchise Agreement, which is currently at least $3,000 per month for each of the BELOCAL ® publications you manage; (2) include a minimum of 28 pages that meet our standards in each issue of the Publication; (3) include the number of articles each month on the topics required in the Franchise Brand Standards Manual; and (4) complete a minimum number of Qualified Sales (as defined in the Franchise Brand Standards Manual) each Quarter. We may change our minimum Commission, page number, article, Qualified Sales, and Quarter requirements in our discretion during the Term of the Franchise Agreement. Although subject to change, currently the Qualified Sale requirement is that you make three Qualified New Sales (or the sale of a new advertising contract that has a term of at least 12 months and generates Cash Received of at least $150 per month) per Quarter. If you fail to satisfy any of the requirements listed in clauses (1) through (4) above, we may provide you with a business improvement plan ("Business Improvement Plan") with strategies and metrics for returning to compliance. Additionally, you will have various deadlines for the content, review, publishing, approval, etc. of the Publication and you must meet each deadline. Failure to satisfy any of these requirements is a default under the Franchise Agreement and is grounds for termination of the Franchise Agreement.
We also require you to make a minimum number of Qualified Sales in the first sixteen weeks of your operation of the Franchised Business ("Pre-Print Sales Requirement"). Although subject to change, currently the Pre-Print Sales Requirement is that you make at least ten Qualified Sales in the first sixteen weeks of your operation of the Franchised Business. If you fail to satisfy the Pre-Print Sales Requirement, we may provide you with a Business Improvement Plan with metrics and strategies for you to improve your sale of advertising contracts. Failure to successfully complete any Business Improvement Plan is a default under the Franchise Agreement and is grounds for termination of the Franchise Agreement.
Currently, you must include five Staple articles, two Explore Guides, two Points of View articles, one History article, one Hidden Gem article, and twenty Local Tips articles in each issue of the Publication.
Source: Item 12 — TERRITORY (FDD pages 42–44)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees are granted a non-exclusive territory. Upon signing the Franchise Agreement, Belocal grants the franchisee the non-exclusive right and license to establish and operate the Franchised Business within a defined geographic area, referred to as the "Territory," as detailed in Attachment B of the Franchise Agreement. Within this territory, franchisees have the right to distribute the Belocal publication. However, franchisees are not allowed to relocate their Territory and cannot distribute the Publication outside of their assigned Territory.
Belocal franchisees have the right to sell print and digital advertising services to clients both inside and outside their Territory, provided they adhere to Belocal's digital advertising policies, cross-selling policies, and Franchise Brand Standards Manual. However, Belocal retains the right to allow other franchisees or affiliates to sell advertising to clients located within the franchisee's Territory. The Territory's boundaries are defined by Belocal, and the size can vary based on market availability, Belocal's plans, the franchisee's resources, and market conditions. Belocal also retains the discretion to change the Territory's size, shape, boundaries, and population with ninety days' notice to the franchisee.
This non-exclusive arrangement means that a Belocal franchisee may face competition from other franchisees, businesses owned by Belocal or its affiliates, or other distribution channels and competitive brands controlled by Belocal. Additionally, Belocal, its affiliates, and other authorized entities have the right to develop other business systems, advertise any business of The N2 Company or any N2 Franchising, Inc. franchised business anywhere, and engage in the production, distribution, and sale of various services and products without compensating the franchisee, even within the franchisee's Territory. This includes the operation and licensing of any business of The N2 Company or any N2 Franchising, Inc. franchised business or any publishing business of any of their affiliates anywhere, including locations that are inside, adjacent to, or surrounded by the franchisee's Territory.
Belocal does not grant franchisees any options, rights of first refusal, or similar rights to acquire franchises for any other territories. Any additional franchised business a franchisee is approved to operate must be operated pursuant to a separate franchise agreement. The franchisee's Franchised Business must be operated from an Office within a 50-mile radius from the perimeter of their Territory, unless Belocal grants a variance. The Office may be a home office, and the franchisee may relocate their Office as long as it is within the distance requirement and they provide Belocal with advance notice. Belocal does not need to approve the location of the Office as long as it is within the distance requirement.