Under the Belocal referral program, what constitutes a 'qualified commission'?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
We may pay a referral fee of $10,000 to the first of our franchisees that introduces a new prospective franchisee to us who is not associated with us, The N2 Company, or any of our affiliated businesses and is identified to us as referred by the prospective franchisee on their initial application if: (a) we approve the new prospect, (b) we and the prospect sign a Franchise Agreement within 6 months after the referral is made, (c) the prospect pays us the full initial franchise fee applicable to their franchise, (d) the prospect timely begins operation of its business, (e) the publication managed by the prospect goes to print, and (f) the prospect earns at least one qualified commission (currently a qualified commission is at least $3,000 (excluding fees charged by the franchisee to the client for ad management services) within 12 months of the date the prospect begins operations of its business. If we pay the referral fee, we will pay the fee after all of the above conditions are met. The prospect turned franchisee must also be in good standing under its franchise agreement at the time. You must be in full compliance with all Franchise Agreements between you and us (or our affiliates) in order to receive a referral fee. This referral fee is available only if the new prospect's Franchised Business manages a new publication or acquires the rights to manage a Bridge Publication; it is not available for transfers of existing Franchised Businesses. This referral program is subject to all state and local laws and regulations. We reserve the right to terminate, cancel, or modify such referral program at any time. Franchisees should refer to the Referral Program Policy document for additional rules and information. No more than one referral fee will be paid to franchisees living in or operating a Franchised Business within the state of Washington, and no franchisee, regardless of location,
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a 'qualified commission' within the context of their franchise referral program is defined as at least $3,000, excluding any fees the new franchisee charges clients for ad management services. This benchmark must be achieved within the first 12 months from when the new franchisee begins operating their Belocal business. This definition is important because it is one of the key criteria that must be met for the referring franchisee to receive the $10,000 referral fee.
For a Belocal franchisee to be eligible for the $10,000 referral fee, several conditions must be satisfied. First, the referred prospective franchisee must not be associated with Belocal, The N2 Company, or any of their affiliated businesses. Second, Belocal must approve the new prospect, and a Franchise Agreement must be signed within six months of the referral. The new franchisee must pay the full initial franchise fee, begin operations promptly, and publish their first issue. Finally, the new franchisee must achieve the qualified commission of at least $3,000 within 12 months, excluding ad management fees.
It's important to note that the referral fee is paid only after all these conditions are met and the new franchisee is in good standing under their franchise agreement. The referring franchisee must also be in full compliance with their own franchise agreements. This referral program applies only when the new franchisee manages a new publication or acquires rights to a Bridge Publication, and it is not applicable for transfers of existing Belocal franchises. Belocal also retains the right to modify or terminate the referral program at any time, and the program is subject to all state and local laws and regulations. Prospective franchisees should consult the Referral Program Policy document for more details.