Under what conditions can a Belocal franchisee sell advertising to clients outside their territory?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. You have the right to sell and offer to sell print advertising and digital advertising services to clients located both inside and outside of your Territory, but only in accordance with our then-current digital advertising policies, crossselling policies and Franchise Brand Standards Manual. We also have the right to allow other franchisees or affiliates to offer and sell advertising in all forms to clients located in your Territory.
Your Territory will be defined by geographic boundaries or descriptions we select. We do not grant any minimum territory. The actual size of the Territory will vary depending upon the availability of markets, our long-range plans, your financial and operational resources, and market conditions. A written description of the Territory will be inserted in Attachment B to the Franchise Agreement before you sign the Franchise Agreement. The boundaries used to define the Territory will be geographic boundaries as configured on the effective date of the Franchise Agreement, which may be described as certain neighborhoods, subdivisions, or communities, or a specific home count in an area, as determined by us. We have the sole discretion to change your Territory, including its size, shape, boundaries, and population, upon ninety (90) days' notice to you.
Source: Item 12 — TERRITORY (FDD pages 42–44)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees have specific rights and limitations regarding selling advertising outside of their designated territory. While franchisees are generally restricted from marketing or selling services outside their territory, there are exceptions for print advertisements and digital advertising services.
Specifically, a Belocal franchisee can sell print advertisements for inclusion in their own publication or in publications managed by other franchisees, regardless of the client's location. Additionally, franchisees can sell digital advertising services to clients outside their territory, but these sales must comply with Belocal's cross-selling policies and digital advertising policies. These policies are further detailed in the Franchise Brand Standards Manual, which Belocal can modify at its discretion.
It's important to note that Belocal retains the right to restrict a franchisee from offering or selling advertisements to any client or prospective client at any time. This condition underscores that while franchisees have the opportunity to expand their advertising sales beyond their territory, Belocal maintains ultimate control over these activities. Prospective franchisees should carefully review the cross-selling policies, digital advertising policies, and Franchise Brand Standards Manual to fully understand the scope and limitations of their ability to sell advertising outside their territory.