In what year did Belocal apply to renew its registration with the state of California?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
On or about December 15, 2016, the registration of our FDD for the offer and sale of our N2 Publishing franchises (now STROLL and GREET franchises) was approved by the state of California. On October 16, 2019, we applied to renew our registration. After cooperating with the state of California's requests for information relating to our affiliate's, Neighborhood Networks Publishing, Inc. (now known as The N2 Company), business activities in California prior to our initial registration in California, the state of California determined that Neighborhood Networks Publishing, Inc. had offered and sold franchises in violation of the California Franchise Investment Law before the date of our 2016 application. The state of California alleged that Neighborhood Networks Publishing, Inc. failed to provide prospective purchasers with disclosure documents in violation of California law. Neither we nor Neighborhood Networks Publishing, Inc. agrees with the state of California's findings, but in an effort to resolve the matter, in October 2020, Neighborhood Networks Publishing, Inc. entered into a Consent Order with the state of California. Under the Consent Order, Neighborhood Networks Publishing, Inc. agreed (1) to cease and desist from violations of the California Franchise Investment Law and (2) to reimburse the state of California for its investigative costs in the amount of $10,000.
Source: Item 3 — LITIGATION (FDD page 13)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the company applied to renew its franchise registration in California on October 16, 2019. However, the FDD also indicates some past issues with compliance in California.
Specifically, the FDD mentions that the state of California determined that Neighborhood Networks Publishing, Inc. (now known as The N2 Company), an affiliate of Belocal, had offered and sold franchises in violation of the California Franchise Investment Law before the initial registration in 2016. The state alleged that Neighborhood Networks Publishing, Inc. failed to provide prospective purchasers with disclosure documents as required by California law.
To resolve the matter, in October 2020, Neighborhood Networks Publishing, Inc. entered into a Consent Order with the state of California, agreeing to cease and desist from violations of the California Franchise Investment Law and to reimburse the state for its investigative costs in the amount of $10,000. This history of non-compliance and the subsequent consent order could be a red flag for potential franchisees in California, suggesting a need for careful due diligence and legal consultation.