Are there additional fees associated with the optional services offered to Belocal franchisees by The N2 Company?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Our affiliate, The N2 Company, is approved to supply you with optional services for your Franchised Business. Currently, these optional services include client ad strategy services and lead generation services. The service offerings are subject to change. Additional services may be approved while other existing services may be discontinued. To receive these optional services, you must enter into an N2 Franchisee Services Agreement with our affiliate. The current form of N2 Franchisee Services Agreement is attached to this disclosure document as Exhibit F. There are additional fees associated with these optional services. Future optional services may include premium versions of the client ad strategy services, content services, writing and editing services, business strategy coaching, social media management services, administrative services, consulting services, or client care services. This is not an exhaustive list of potential optional services and neither we nor our affiliate is obligated to make any such services available to our franchisees. Our affiliate may establish and change the prices for current and future services in its discretion.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–35)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, there are additional fees associated with the optional services provided by The N2 Company, an affiliate of Belocal. To receive these optional services, a franchisee must enter into an N2 Franchisee Services Agreement. The optional services currently include client ad strategy services and lead generation services, but these offerings are subject to change, with new services potentially being added or existing ones discontinued. Future optional services may include premium versions of client ad strategy services, content services, writing and editing services, business strategy coaching, social media management services, administrative services, consulting services, or client care services.
The N2 Company has the discretion to establish and change the prices for both current and future services. This means that the costs for these optional services can vary and may change over time. The FDD does not specify the exact amounts of these fees, but it is clear that they are in addition to the initial franchise fee and other ongoing fees associated with operating a Belocal franchise.
Prospective Belocal franchisees should carefully review the N2 Franchisee Services Agreement (Exhibit F of the FDD) to understand the full scope of services offered, the associated fees, and the terms and conditions of the agreement. It is also advisable to discuss these optional services and their costs with existing Belocal franchisees to gain a better understanding of their value and impact on the overall profitability of the franchise. Given that Duane Hixon and Earl Seals, Directors of Belocal, have ownership interests in The N2 Company, franchisees should be aware of this potential conflict of interest and ensure that the services provided by The N2 Company are competitively priced and beneficial for their business.