What is the significance of the 'Reporting Period' for Belocal's financial performance representation?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
This historical financial performance representation relates to Commission payments we paid from July 1, 2024 through June 30, 2025 ("Reporting Period") to 84 BeLocal Publications that were in print as of June 30, 2024 and that had been in print for a full year ("Reporting Publications") and to 88 franchisees who were active franchisees for the Reporting Period ("Reporting Franchisees"). By "in print," we mean that the publication that had been in print for at least one year under the franchisee's management. By "active franchisee" we mean actively involved in in-print activities for at least one Publication for the entirety of the Reporting Period.
We had a total of 135 BELOCAL publication franchises during the Reporting Period. We excluded the Commission payments made to publications that were not in print for the full year. We do not include information for franchisees who have been operating less than one year because we do not consider that information to be as reliable as information from franchisees who have been in operation for at least one year. We also excluded the Commission payments made to publications that were managed by 4 franchisees whose Commission payments were calculated using a different formula than the rest of our franchisees. We do not include in this disclosure document financial information about Publications managed by our affiliate. We do not include in this disclosure document financial information about our franchisees who operate the 13 Test Publications.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 55–59)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the 'Reporting Period' is a specific timeframe from July 1, 2024, through June 30, 2025. This period is significant because the financial performance representations provided in Item 19 are based on the actual commission payments made to Belocal publications and franchisees during this time. The data includes 84 BeLocal Publications that were in print as of June 30, 2024, and had been in print for a full year, as well as 88 franchisees who were active franchisees for the Reporting Period.
The Reporting Period ensures that the financial data presented is consistent and comparable across all reporting publications and franchisees. By focusing on publications that had been in print for at least one year and franchisees who were actively involved for the entire period, Belocal aims to provide a more reliable representation of potential financial performance. This approach excludes newer publications and franchisees whose initial performance might not be indicative of long-term results.
Belocal also excluded commission payments made to publications that were not in print for the full year, as well as those managed by franchisees whose commission payments were calculated using a different formula. This ensures that the financial performance data is based on a uniform set of criteria, making it more relevant for prospective franchisees. The FDD specifically excludes financial information about publications managed by Belocal's affiliate and the 13 Test Publications. A prospective franchisee should consider these exclusions when evaluating the financial performance representations, as their individual results may vary depending on their specific circumstances and management practices.
It is important to note that Belocal has not audited or otherwise verified the commission payments information provided in Item 19. Therefore, prospective franchisees are encouraged to conduct their own independent investigation of the costs and expenses they will incur in operating their franchised business. They should also consult with financial, business, legal, and tax advisors to conduct their own analysis of the franchise opportunity.