Does Belocal specify any exceptions to its right to change the Cross-Selling Fee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Any time during the Term of this Agreement, with no prior notices unless otherwise required by law, Franchisor reserves the right to change the Cross-Selling Fee to be calculated as follows:
- (i) The Selling Franchisee would receive an Outgoing Cross-Selling Fee equal to 10% of the monthly Cash Received for each print advertisement sold by the Selling Franchisee that will be included in the publication managed by the Receiving Franchisee.
- (ii) The Managing Franchisee (as defined by Franchisor's then-current Franchise Brand Standards Manual) would receive a Managing Cross-Selling Fee equal to 30% of the monthly Cash Received for each print advertisement, less the Royalty of 15% of the Cash Received.
- (iii) The Receiving Franchisee would receive a Receiving Cross-Selling Fee equal to 60% of the monthly Cash Received for that print advertisement, less the Publication Expenses.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal reserves the right to change the Cross-Selling Fee at any time during the term of the agreement. Belocal is not required to provide prior notice of such changes unless otherwise required by law.
The current Cross-Selling Fees are structured such that the Selling Franchisee receives an Outgoing Cross-Selling Fee equal to 25% of the monthly Cash Received for each print advertisement sold that will be included in the publication managed by the Receiving Franchisee. The Receiving Franchisee receives a Receiving Cross-Selling Fee equal to 75% of the monthly Cash Received for that print advertisement, less the Royalty of 15% of the Cash Received and the Publication Expenses.
Belocal retains the right to modify the Cross-Selling Fee structure. If Belocal exercises this right, the Selling Franchisee would receive an Outgoing Cross-Selling Fee equal to 10% of the monthly Cash Received. The Managing Franchisee would receive a Managing Cross-Selling Fee equal to 30% of the monthly Cash Received, less the Royalty of 15% of the Cash Received. The Receiving Franchisee would receive a Receiving Cross-Selling Fee equal to 60% of the monthly Cash Received for that print advertisement, less the Publication Expenses. This change could significantly impact the revenue distribution among franchisees involved in cross-selling activities.