What specific activities does the Belocal System encompass for franchised businesses?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Franchisor has the right to use and license the use of a system ("System") for the establishment and operation of franchised businesses that (i) sell print advertising for publications, (ii) sell digital advertising services, (iii) facilitate publishing of a print publication, (iv) solicit and compile content for a publication, and (v) organize local events, all under the Marks ("Franchised Business").
- B. The System is identified by certain Marks and includes certain Confidential Information which provides economic advantages to Franchisor and licensed users of the System.
H. Office; Equipment.
- (2) Franchisee must acquire and use any computer (including tablets), hardware, cloud systems, artificial intelligence tools, and software for the operation of the Franchised Business that Franchisor requires, including any enhancements, additions, substitutions, modifications, upgrades, and specific models or versions ("Technology").
Franchisor may also require Franchisee to license from Franchisor, or others Franchisor designates, any computer software Franchisor develops or acquires for use in connection with the Franchised Business and pay any fees associated with any such software licenses.
To provide for inevitable but unpredictable changes to technological needs and opportunities, Franchisee agrees that Franchisor shall have the right to establish, in writing, reasonable new standards for the implementation of Technology in the System; and Franchisee agrees that Franchisee will abide by any such reasonable new standards established by Franchisor, at Franchisee's sole cost and expense.
(2) Forward to Franchisor or its affiliate all Advertising Contracts or other contracts related to the Publication which have been executed by a representative of an Industry Group or an advertiser, as applicable, for review, approval, and execution by Franchisor or its affiliate no later than 30 days after such contracts have been executed by the Industry Group or advertiser, as applicable, and enter all such contracts into the accounting system (Portal) designated by Franchisor within seven days from the date of sale.
(4) Each month, and for each Publication that Franchisee manages, Franchisee must solicit, gather, obtain, and, as applicable, generate, content for such Publication that complies with Franchisor's standards and requirements.
Each month, and for each Publication that Franchisee manages, Franchisee must (i) maintain a minimum, monthly Commission in the amount prescribed in the Franchise Brand Standards Manual; (ii) include a minimum number of pages that meet Franchisor's standard within each issue of the Publication, as prescribed in the Franchise Brand Standards Manual; and (iii) include
Franchisor hereby grants Franchisee a limited license to use the Marks and Copyrighted Materials designated by Franchisor, solely for the purpose of operating, advertising, and promoting the Franchised Business, as contemplated by this Agreement. Franchisee further expressly agrees that:
- B. Franchisee shall not use the name of any N2 publication or any of Franchisor's Marks or trade names, including the specific Marks "BELOCAL," "N2," "N2 Publishing," "Hyport Digital," or any abbreviation, acronym, or variation of those words as part of Franchisee's name, as part of any business entity in which Franchisee owns or holds an interest, or as part of any Online Presence (including any Internet, Web address, or email domain name or URL). Franchisee must submit to Franchisor for approval, in writing, Franchisee's proposed entity name, and Franchisee shall not name its entity using any name that is not approved by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Belocal System encompasses several key activities for franchised businesses. These include selling print advertising for publications, selling digital advertising services, facilitating the publishing of a print publication, soliciting and compiling content for a publication, and organizing local events, all conducted under the Belocal Marks. The Belocal System also involves developing relationships among residents of Communities and members of Industry Groups. These activities are designed to help franchisees establish and operate their franchised businesses effectively.
Franchisees are required to use specific computer hardware, software, and cloud systems as mandated by Belocal, which may include enhancements, additions, and upgrades. Belocal retains the right to set new technology standards and requires franchisees to comply with these standards at their own expense. This may involve additional fees or the purchase of new technology. Belocal also maintains complete access to any technology or software provided to the franchisee, requiring franchisees to provide all necessary passwords and login credentials.
Franchisees must adhere to certain operational requirements, including forwarding advertising contracts to Belocal for approval and entering these contracts into Belocal's designated accounting system within specified timeframes. Additionally, franchisees must achieve a minimum number of qualified sales within the initial weeks of operation and meet monthly commission and page count standards for each publication they manage. Failure to meet these requirements may result in a business improvement plan, and failure to complete the plan can lead to termination of the franchise agreement.
Belocal grants franchisees a limited license to use its Marks and copyrighted materials for operating, advertising, and promoting the franchised business. Franchisees must use the Marks in the precise form prescribed by Belocal and adhere to all directions regarding their presentation and use. Franchisees are prohibited from using Belocal's name or Marks as part of their entity name or online presence without prior written approval from Belocal. This ensures consistent branding and protects the goodwill associated with the Belocal brand.