factual

What rights does the Belocal Franchise Agreement grant to the franchisee?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

The franchise agreement attached as Exhibit B to this disclosure document ("Franchise Agreement") will grant you the right to operate a Franchised Business in which you will sell print advertising for, and facilitate the publishing and distribution of, a BELOCAL® publication (the "Publication") to be distributed within a

non-exclusive, geographic area ("Territory"); sell digital advertising services; solicit and compile content for the Publication; and organize local events, all while using our System (as defined herein) and Marks.

The Franchise Agreement provides you with the right to sell print advertising for print publications. You will also have the right to sell digital advertising services and organize local events. Currently the only digital advertising services you are authorized to sell are the extended reach ("Extended Reach") services for print advertisements. As noted below, you may also solicit leads for and facilitate client relationships with Hyport Digital, our digital marketing services business.

The distinguishing characteristics of the "System" include specifications, policies, and procedures for operations; quality of the products and services offered; procedures for sales, management, and financial control; customer service; training and assistance; and advertising and promotional programs, all of which we may change, improve, and further develop from time to time.

Currently, we provide franchisees the following: (a) initial training and, in our discretion, additional or remedial training on an as-needed basis; (b) access to the Franchise Brand Standards Manual (as defined in the Franchise Agreement); (c) ongoing advice and written materials about the operation and management of your Franchised Business; (d) at our option, certain software programs; and (e) a list of any approved or designated suppliers. We or our affiliate may also offer optional services to franchisees to assist in operations of the Franchised Business. To receive these optional services, you must enter into an N2 Franchisee Services Agreement with our affiliate. The current form of N2 Franchisee Services Agreement is attached to this disclosure document as Exhibit F. There are additional fees associated with these optional services. The service offerings are subject to change. Additional services may be approved while other existing services may be discontinued.

You will operate your Franchised Business out of a facility you choose, which may be home based ("Office"). Unless we grant you a variance, your Office must be located within a radius of 50 miles from the perimeter of your Territory.

Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)

What This Means (2025 FDD)

According to Belocal's 2025 Franchise Disclosure Document, the Franchise Agreement grants franchisees the right to operate a Franchised Business. This includes selling print advertising for a BELOCAL publication within a non-exclusive geographic area or "Territory." Franchisees also have the right to sell digital advertising services, solicit and compile content for the Publication, and organize local events, all while using Belocal's System and Marks. The only digital advertising services franchisees are currently authorized to sell are the extended reach ("Extended Reach") services for print advertisements. Franchisees may also solicit leads for and facilitate client relationships with Hyport Digital, Belocal's digital marketing services business.

The "System" encompasses specifications, policies, and procedures for operations; quality of the products and services offered; procedures for sales, management, and financial control; customer service; training and assistance; and advertising and promotional programs. Belocal retains the right to change, improve, and further develop the System over time. Belocal may also offer promotions and incentives, including sales incentives, to existing franchisees, which will be outlined in the Franchise Brand Standards Manual. These promotions and incentives will be of limited duration and subject to change at Belocal's discretion, and Belocal has no obligation to offer them.

Belocal franchisees may be authorized to sell advertisements or advertising inserts into one or more Bridge Publications and will be entitled to a commission determined by Belocal's then-current commission policy. If a franchisee chooses to, they may solicit leads for and facilitate client relationships with Hyport Digital as part of the Franchised Business, receiving an "HD Sales Commission." This opportunity is conditional on the continuance of the sales program, which Belocal may modify and discontinue at its sole discretion. Belocal may also require franchisees to complete additional training and achieve certain certifications to qualify for this opportunity.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.