Does Belocal have the right to restrict the franchisee from offering or selling advertisements to any client or prospective client?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything in this Agreement to the contrary, Franchisor has the right to restrict Franchisee from offering or selling advertisements in any form to any client or prospective client at any time.
Franchisor has the right to allow other franchisees, affiliates of Franchisor, or any other party Franchisor deems appropriate to offer and sell advertising in any forms to clients located in Franchisee's Territory, without any liability to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal retains the right to restrict a franchisee from offering or selling advertisements to any client or prospective client at any time. This means that Belocal has broad discretion to control the franchisee's sales activities.
Belocal also has the right to allow other franchisees, its own affiliates, or any other party it deems appropriate to offer and sell advertising in any form to clients located within the franchisee's territory, without incurring any liability to the franchisee. This indicates that a franchisee's territory is not exclusive and that Belocal can authorize others to compete within that territory.
This arrangement carries significant implications for prospective franchisees. Belocal retains considerable control over advertising sales, and franchisees may face competition from other parties authorized by Belocal within their own territories. A prospective franchisee should carefully consider these factors and seek clarification from Belocal regarding the specific circumstances under which these rights would be exercised.