What specific business lines or services are included in the Belocal definition of 'Competitive Business'?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Competitive Business" includes the following divisible and severable business lines or services (each a "Competitive Service") which the Franchisee's Franchised Business provided (a) for covenants applicable during the Term, during the Term and (b) for covenants applicable post-term, at any time within the twelve-month period prior to the termination, expiration, or transfer of this Agreement:
(i) selling digital and/or print advertising to businesses for publication in or related to digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
(ii) publishing and/or facilitating the publishing of digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
(iii) developing relationships among members of Communities within the Territory, or members of Industry Groups within the Territory and within ten miles of the Territory, for the purpose of selling or marketing digital or print publications that compete with any N2 publication(s), including BELOCAL publications;
(iv) organizing, sponsoring, or hosting events for advertisers in the Publication or members of Communities within the Territory, or members of Industry Groups within the Territory and within ten miles of the Territory, for the purpose of selling or marketing digital or print publications, or digital or print advertising in digital or print publications, that compete with any N2 publication(s); or
(v) offering or selling digital marketing and advertising services which are offered or sold by Franchisor or its affiliates or are or were offered and sold by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a 'Competitive Business' encompasses specific business lines or services that could be considered competitive to Belocal. These include selling digital or print advertising for publications that compete with N2 publications, including Belocal publications. This restriction applies both during the franchise term and, for a period of twelve months prior to termination, expiration, or transfer of the franchise agreement.
Additionally, 'Competitive Business' includes publishing or facilitating the publishing of digital or print publications that compete with N2 publications, including Belocal publications. It also covers developing relationships among community or industry group members within or near the territory to sell or market competing publications. Organizing or hosting events for advertisers or community members to market competing publications also falls under this definition.
Furthermore, offering or selling digital marketing and advertising services that are offered or sold by Belocal or its affiliates, or were offered and sold by the franchisee, is considered a 'Competitive Business.' These restrictions are designed to protect Belocal's market position and confidential information by preventing franchisees from directly competing with the franchisor during and for a limited time after the franchise agreement.
Prospective franchisees should carefully consider these restrictions, as they limit the franchisee's ability to engage in similar business activities, even after the franchise agreement ends. It is important to understand the scope of these limitations and how they might affect future business opportunities.