Under what conditions does a Belocal franchisee receive a Managing Cross-Selling Fee, and how is that fee calculated?

According to Belocal's 2025 Franchise Disclosure Document, a franchisee may receive a Managing Cross-Selling Fee if they actively manage the relationship with an advertiser client whose print advertisement is published in a publication managed by another Belocal franchisee. This fee is part of Belocal's cross-selling program, which involves franchisees selling print advertisements for publications managed by other franchisees. The franchisee who sells the ad is the "Selling Franchisee," the one managing the publication is the "Receiving Franchisee," and the one managing the client relationship is the "Managing Franchisee."

The Managing Cross-Selling Fee is calculated as 30% of the monthly Cash Received for each print advertisement, less a royalty of 15% of the Cash Received. "Cash Received" is defined as all revenue actually received by Belocal or its affiliates from advertisers or other parties related to each publication issue. It's important to note that Belocal retains the right to change the Cross-Selling Fee structure, including the Managing Cross-Selling Fee, with no prior notice, unless otherwise required by law.

To be eligible for any Cross-Selling Fee, including the Managing Cross-Selling Fee, a Belocal franchisee must comply with the company's policies, procedures, and guidelines related to cross-selling. Failure to comply with these standards could result in the termination of the franchisee's right to cross-sell or even the termination of the Franchise Agreement. This highlights the importance of adhering to Belocal's established protocols to maintain eligibility for this additional revenue stream.

In summary, the Managing Cross-Selling Fee offers an opportunity for Belocal franchisees who actively manage client relationships to earn additional income when their clients advertise in publications managed by other franchisees. However, this fee is subject to change and contingent upon compliance with Belocal's cross-selling policies.