Does Belocal have the right to place corporate ads in the publication?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and its affiliates have the right, but not the obligation, to place national, regional, or local advertisements or advertising inserts that have been solicited and obtained by Franchisor, Franchisor's affiliates, or a third party, without Franchisee's involvement, in the Publication in the size and format as determined by Franchisor in its sole discretion and at Franchisor's sole expense ("Corporate Ads").
Franchisee has no right to review and/or approve the form or content of such Corporate Ads.
Franchisor may, but is not required to, pay Franchisee a commission with respect to any Corporate Ad.
If Franchisor elects to pay Franchisee a commission for any particular Corporate Ad, such commission shall be paid in accordance with Franchisor's then-current Corporate Ad commission policy, as set forth in the Franchise Brand Standards Manual, and the amount of such commission may be calculated in a different manner than the calculation of Commissions under Section 4.A., in Franchisor's sole discretion.
If any additional incremental expenses are incurred by Franchisor due to the placement of Corporate Ads, and Franchisor does not pay Franchisee a commission for such placements, the additional incremental expenses resulting from the Corporate Ad(s) in the Publication shall not be included in Publication Expenses for purposes of calculating Franchisee's commission.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal (the franchisor) and its affiliates have the right to place national, regional, or local advertisements, or advertising inserts, solicited and obtained by Belocal, its affiliates, or a third party, in the franchisee's publication. These are referred to as "Corporate Ads." Belocal determines the size and format of these ads at its sole discretion and expense.
As a Belocal franchisee, you have no right to review or approve the form or content of these Corporate Ads. Belocal may choose to pay you a commission for any Corporate Ad, according to its Corporate Ad commission policy detailed in the Franchise Brand Standards Manual. The commission calculation may differ from the standard commission calculation.
If Belocal doesn't pay a commission for Corporate Ads, any additional incremental expenses incurred due to their placement will not be included in the publication expenses when calculating the franchisee's commission. This means that while Belocal can place ads in your publication without your approval, they may also compensate you for it, or at least ensure that your commission isn't negatively impacted by the placement of those ads.