Is the right granted to the Belocal franchisee to operate the franchised business exclusive or non-exclusive?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
Reserved Rights.
The rights granted to Franchisee under this Agreement are nonexclusive, and Franchisee is not granted any territorial rights or other protection.
Accordingly, Franchisor, its affiliates, and any other authorized person or entity shall, without limitation, have the right (1) to develop and establish other business systems (including systems that distribute products or services similar to those offered by the Franchised Business) using the Marks, or other names or marks, and to grant licenses to use those systems at any location without providing any rights to Franchisee; (2) to advertise and promote any N2 publications, N2 Co. businesses, and the businesses of Franchisor's franchisees, anywhere; (3) to operate, and license others to operate, any Franchised Business, N2 publication franchised businesses, or any business of any of Franchisor's affiliates, anywhere, including locations that are inside, adjacent to, or surrounded by Franchisee's Territory; and (4) to engage, directly or indirectly, at wholesale, retail, or otherwise, in the production, distribution, license, and sale of all forms (including electronic forms) of magazines, newsletters, advertising, marketing, graphic and web design, or other services and products, under the Marks, or under other names or marks, at any location, including in the Territory, through any method of distribution, including, but not limited to, mail order catalogs and the Internet, regardless of the proximity to, or the competitive impact on, the Franchised Business.
Franchisor has the sole discretion to change Franchisee's Territory, including its size, shape, boundaries, and population, upon ninety (90) days' notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the rights granted to a franchisee are non-exclusive. Specifically, Belocal retains the right to develop other business systems, including those that offer similar products or services, under the Belocal brand or other brands, and to grant licenses to others without providing any rights to the franchisee.
Belocal, its affiliates, and any authorized entities have the right to advertise and promote any N2 publications, N2 Co. businesses, and the businesses of Belocal's franchisees anywhere. They can also operate or license others to operate any franchised Belocal business or any business of Belocal's affiliates anywhere, including locations within, adjacent to, or surrounded by the franchisee's territory.
Furthermore, Belocal reserves the right to engage in the production, distribution, and sale of various forms of media and services, including magazines, newsletters, advertising, and marketing, under the Belocal brand or other brands, at any location, including within the franchisee's territory. This can be done through any method of distribution, such as mail order catalogs and the Internet, regardless of its proximity to or competitive impact on the franchisee's business. Belocal also has the discretion to change a franchisee's territory with ninety days' notice.