Within what timeframe after a referral is made must Belocal and the prospect sign a Franchise Agreement for the referring franchisee to be eligible for the referral fee?
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 referring franchisee can receive a $10,000 referral fee if several conditions are met. One of these conditions is that Belocal and the referred prospect must sign a Franchise Agreement within 6 months after the referral is made.
This means that for a Belocal franchisee to be eligible for the referral fee, the entire process from initial referral to the signing of the Franchise Agreement must occur within this 6-month window. This timeframe is important for prospective franchisees to consider, as it sets a deadline for converting a lead into a signed agreement to receive the referral bonus.
Other conditions also apply to receiving the referral fee. The referred prospect must be approved by Belocal, pay the full initial franchise fee, begin operating their business in a timely manner, have their publication go to print, and earn at least one qualified commission of at least $3,000 within 12 months of starting operations. The referring franchisee must also be in full compliance with their own Franchise Agreement and the new prospect must manage a new publication or acquire rights to manage a Bridge Publication. These additional requirements highlight that the referral fee is contingent on the success and good standing of both the referring and the referred franchisees.