Under what conditions can Belocal restrict a franchisee from offering or selling advertisements to a client?

According to Belocal's 2025 Franchise Disclosure Document, Belocal has the right to restrict a franchisee from offering or selling advertisements in any form to any client or prospective client at any time. This means that Belocal retains complete discretion over which clients a franchisee can solicit or sell to.

This clause gives Belocal significant control over the franchisee's sales activities. Belocal also retains the right to allow other franchisees, its own affiliates, or any other party it deems appropriate to offer and sell advertising in any form to clients located within the franchisee's territory, without incurring any liability to the franchisee. This essentially means Belocal can authorize others to compete directly with the franchisee within their own territory.

For a prospective franchisee, this lack of territorial exclusivity and the franchisor's ability to restrict sales to specific clients represent significant risks. A franchisee's ability to generate revenue could be directly impacted by Belocal's decisions regarding client restrictions and the authorization of competing sales activities within the territory. This is not uncommon in the franchise industry, but the extent of control Belocal retains is something a prospective franchisee should carefully consider.