What are 'Strategic Partners' in the context of a Belocal franchise?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
We, our affiliates, or our other franchisees may, from time to time in our sole discretion, solicit, seek to establish, or establish one or more national or regional accounts with prospective advertisers and advertisers that may be located in, or have offices, branches, or some other presence, in your Territory ("Strategic Partners"). You have no right to solicit or sell advertising to a Strategic Partner, but we may, in our discretion, establish a policy allowing you to do so, and we may change such policy in our discretion at any time. If you attempt to sell advertising to a Strategic Partner, you must strictly comply with all of our requirements relating to such relationships, including honoring any pricing arrangement agreed to between us and such Strategic Partner. We reserve the right to designate, at any time, any advertiser as a Strategic Partner, including but not limited to those to whom you have already sold advertising.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Strategic Partners are national or regional accounts that Belocal, its affiliates, or other franchisees may solicit or establish with prospective advertisers and advertisers. These advertisers may be located in, or have offices or branches within, a franchisee's territory.
Belocal franchisees do not have the right to solicit or sell advertising to Strategic Partners unless Belocal establishes a policy allowing them to do so, which Belocal may change at any time. If a franchisee is permitted to sell to a Strategic Partner, they must adhere to all of Belocal's requirements, including any pricing arrangements agreed upon between Belocal and the Strategic Partner. Belocal retains the right to designate any advertiser as a Strategic Partner, even those to whom a franchisee has already sold advertising.
This arrangement has important implications for prospective franchisees. While franchisees typically have exclusive territories, Belocal retains control over national and regional accounts. This means a significant potential revenue stream could be managed directly by Belocal, potentially impacting a franchisee's earnings. Franchisees need to understand the potential impact of Strategic Partners on their business and clarify with Belocal the criteria for designating advertisers as Strategic Partners and the commission structure, if any, for sales made to them.