Does Belocal specify any circumstances under which it would refund payments made by advertisers?

According to Belocal's 2025 Franchise Disclosure Document, Belocal reserves the right to refund payments made by advertisers for any reason. This policy has a direct impact on how Belocal franchisees are paid their commissions.

Belocal calculates commissions on an issue-by-issue basis and pays franchisees monthly based on the aggregate of all monthly commissions earned for each of the franchisee's publications. However, if the commission calculation results in a negative commission, the franchisee will not receive a commission for that month, and the negative amount will be carried over and deducted from future commission payments.

Because Belocal can refund advertiser payments for any reason, there is a risk that a franchisee's commission can be reduced or eliminated due to these refunds. The FDD states that commission payments are based upon estimates of payments Belocal or its affiliate will receive in connection with Advertising Contracts. This means that the franchisee's income is directly tied to the stability and collection of advertising revenue, which can be unpredictable.