What sales services does Belocal provide under the agreement with N2 Company?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise agreement.
Sales services revenue
Pursuant to a services agreement with N2 Company, the Company provides sales services which includes the management of the system of selling print advertising by its Franchised Businesses in one or more of N2 Company's publications. This revenue is recognized as earned.
Advertising and marketing
All costs associated with advertising and marketing are expensed in the period incurred.
2. Significant Accounting Policies (continued)
Income Taxes
The Company is taxed as a C-Corporation.
Source: Item 23 — RECEIPTS (FDD pages 71–242)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal provides sales services to N2 Company, an affiliate. These services include managing the system of selling print advertising by Belocal's franchised businesses in one or more of N2 Company's publications. Belocal recognizes the revenue from these services as it is earned.
For a prospective Belocal franchisee, this means that Belocal manages the advertising sales process in N2 Company's publications. This arrangement suggests a close relationship between Belocal and N2 Company, where Belocal relies on N2 Company's publications as a key outlet for advertising sales generated by its franchisees.
In the years ending June 30, 2025, 2024 and 2023, Belocal generated significant revenue from these sales services provided to N2 Company, specifically $82,501,921, $77,450,854 and $77,776,240, respectively. This revenue is included in the sales services revenue in the statements of operations. This indicates that the sales services provided to N2 Company are a substantial part of Belocal's business operations and revenue generation.