What rights are reserved by Belocal, its affiliates, and other authorized entities?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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 nonexclusive, and franchisees do not receive territorial rights or protection. This means Belocal retains significant rights for itself, its affiliates, and other authorized entities.
Specifically, Belocal reserves the right to develop and establish other business systems, including those that offer similar products or services, using Belocal's trademarks or other marks. They can grant licenses to others to use these systems at any location without providing any rights to the franchisee. Belocal can also advertise and promote any N2 publications, N2 Co. businesses, and the businesses of Belocal's franchisees anywhere.
Furthermore, Belocal retains the right to operate or license others to operate any franchised Belocal business, N2 publication franchised businesses, or any business of Belocal's affiliates anywhere, including locations inside, adjacent to, or surrounded by the franchisee's territory. Belocal can also engage in the production, distribution, licensing, and sale of various services and products, such as magazines, newsletters, advertising, and marketing, under Belocal's marks or other names, at any location, including within the franchisee's territory, through any distribution method, including mail order catalogs and the Internet. Belocal also has the discretion to change a franchisee's territory with ninety (90) days' notice.
These reserved rights highlight that a Belocal franchise agreement does not guarantee an exclusive territory or protection from competition from Belocal itself or its other franchisees and authorized entities. A prospective franchisee should carefully consider these factors and their potential impact on the profitability and success of their franchise.