From which single customer does Belocal derive its sales services revenue?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
ns its deposits in one financial institution.
The Company derives its sales services revenue from one customer, its affiliate, N2 Company. In the normal course of business, the Company provides credit to its affiliate and does not require collateral.
4. 401(k) Savings Plan
The Company sponsors a defined contribution 401(k) plan covering all eligible employees. To participate in the plan for the purposes of 401(k) elective deferral contributions, an employee must be 18 years of age or older and must have completed 90 days of service.
Source: Item 23 — RECEIPTS (FDD pages 71–242)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the company derives its sales services revenue from a single customer, its affiliate, N2 Company. Belocal provides credit to N2 Company in the normal course of business and does not require collateral.
For the years ending June 30, 2025, 2024 and 2023, the revenue from these sales services amounted to $82,501,921, $77,450,854 and $77,776,240, respectively. This revenue is included in the sales services revenue reported in Belocal's statements of operations.
This reliance on a single affiliate for such a significant portion of revenue presents a potential risk for Belocal franchisees. Any disruption in the relationship between Belocal and N2 Company, or any financial difficulties experienced by N2 Company, could have a material adverse effect on Belocal's revenue and, consequently, on the financial performance of its franchisees. Prospective franchisees should carefully consider this concentration of revenue and conduct thorough due diligence to assess the financial stability of N2 Company and the nature of the services agreement between the two entities.