Does Belocal have the right to seek payment from advertisers who breach advertising agreements?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
If advertisers breach such agreements, Franchisor and its affiliates reserve the right, in their sole discretion, to seek payment from advertisers either by engaging a collections agency, instituting other collections means, and/or filing a lawsuit.
Franchisor shall retain 7% of any amounts collected by Franchisor, its affiliates, or any third-party collection agency to cover Franchisor's internal costs associated with processing collection requests, managing third-party collection agencies, and administering recoveries.
Additionally, Franchisee shall reimburse Franchisor and/or its affiliates for the costs of any litigation related to the enforcement of advertising contracts entered into in connection with the Publication, including without limitation legal and court costs and reasonable attorneys' fees.
For the avoidance of doubt, these costs and fees are separate from and in addition to any Royalties Franchisee must pay on collected amounts.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal reserves the right to seek payment from advertisers who breach advertising agreements related to the Publication. Belocal can pursue this through a collections agency, other collection methods, or by filing a lawsuit.
If Belocal pursues collections, they will retain 7% of the collected amounts to cover their internal costs. These costs include processing collection requests, managing third-party collection agencies, and administering recoveries.
Additionally, the franchisee is responsible for reimbursing Belocal for all litigation costs associated with enforcing advertising contracts. These costs include legal and court fees, as well as reasonable attorney's fees. These costs are separate from any royalties the franchisee must pay on the collected amounts.