Under what conditions is the HD Sales Commission due to a Belocal franchisee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. Hyport Digital Sales Commission. If Franchisee elects to solicit leads for and facilitate client relationships with Hyport Digital, Franchisee shall be entitled to receive the then-current "HD Sales Commission." The amount, due date, calculation, and other details of the HD Sales Commission are subject to change in Franchisor's sole discretion. Franchisor may consider the following factors, among others, in establishing the HD Sales Commission: (1) the type of good or service Franchisee sells to the client, (2) the other goods and services the client purchases, (3) whether or not Franchisee referred the client to Hyport Digital, (4) the scope of the involvement of the Hyport Digital sales team, and (5) Franchisee's role in facilitating the relationship between the client and Hyport Digital. The HD Sales Commission is due, as applicable, (i) only to the first franchisee that introduces a new prospective lead to Hyport Digital who has not already been a client of Hyport Digital during the previous 12-month period and (ii) only if the client unconditionally and completely pays for goods and services purchased from Hyport Digital. The HD Sales Commission shall be calculated on the gross invoice price of the goods and services less all taxes, credits, discounts, rebates, and/or allowances (if any). The HD Sales Commission shall be paid in the month following the client's unconditional and complete payment for purchased goods and services. To receive the HD Sales Commission, Franchisee must be in full compliance with all of the franchise agreements (including this Agreement) between Franchisee and Franchisor (and any other agreements with any of Franchisor's affiliates). Franchisee's opportunity to solicit leads for and facilitate client relationships with Hyport Digital and to receive the HD Sales Commission is conditioned on the continuance of the sales program. Franchisor reserves the right to modify and discontinue the sales program in Franchisor's sole discretion. The then-current HD Sales Commission shall be set forth in the Franchise Brand Standards Manual.
- K. Promotions and Incentives. From time to time, Franchisor may provide Franchisee with the opportunity to participate in certain periodic promotions and incentives, including sales incentives, upon the same terms and conditions as other franchisees and as set forth in the Franchise Brand Standards Manual.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee is entitled to the HD Sales Commission under specific conditions related to their involvement with Hyport Digital. The HD Sales Commission is applicable only to the first franchisee who introduces a new prospective lead to Hyport Digital, provided that the lead has not been a client of Hyport Digital within the previous 12 months. Furthermore, the commission is contingent upon the client unconditionally and completely paying for the goods and services they purchased from Hyport Digital. The amount, due date, and calculation of the HD Sales Commission are subject to change at Belocal's discretion.
To receive the HD Sales Commission, the Belocal franchisee must be in full compliance with all franchise agreements with Belocal and its affiliates. The opportunity to solicit leads and facilitate client relationships with Hyport Digital, and subsequently receive the HD Sales Commission, is conditional on the continuation of the sales program, which Belocal reserves the right to modify or discontinue. The then-current HD Sales Commission details are to be set forth in the Franchise Brand Standards Manual.
The HD Sales Commission is calculated based on the gross invoice price of the goods and services, less any taxes, credits, discounts, rebates, or allowances. Payment of the HD Sales Commission occurs in the month following the client's unconditional and complete payment for the purchased goods and services. This means that a franchisee will not be compensated until the client has fully satisfied their financial obligations to Hyport Digital.
Several factors can influence the establishment of the HD Sales Commission, including the type of good or service sold, other purchases made by the client, whether the franchisee referred the client, the extent of the Hyport Digital sales team's involvement, and the franchisee's role in facilitating the client relationship. These considerations highlight the complexities involved in determining the commission and the potential for variability in earnings for the franchisee.