What was the sales services revenue for Belocal in the provided financial data?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Transactions
Transactions with affiliate
During the years ended June 30, 2025, 2024 and 2023, the Company provided sales services to N2 Company. This revenue is included in sales services revenue in the statements of operations and were $82,501,921, $77,450,854 and $77,776,240 for the years end
Source: Item 23 — RECEIPTS (FDD pages 71–242)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the company's sales services revenue for the fiscal year ending June 30, 2025, was $82,501,921. The FDD also provides sales services revenue for the prior two years. For the year ending June 30, 2024, the sales services revenue was $77,450,854, and for the year ending June 30, 2023, it was $77,776,240. These revenues are included in the statements of operations.
It is important to note that Belocal derives its sales services revenue from its affiliate, N2 Company. The company provides credit to its affiliate in the normal course of business and does not require collateral. This related-party transaction is significant for prospective franchisees to understand, as it indicates a dependency on the financial health and operational relationship with N2 Company.
Prospective franchisees should consider the implications of this related-party revenue structure. While the sales services revenue has shown growth from 2023 to 2025, its reliance on a single affiliate introduces a level of risk. A potential franchisee may want to further investigate the nature of the services agreement between Belocal and N2 Company, and how changes to that agreement could impact Belocal's revenue and, consequently, the support and services available to franchisees.